A Company Purchased 100 Units for $50 Each on January

question 13

Multiple Choice

A company purchased 100 units for $50 each on January 31.It purchased 200 units for $30 each on February 28.It sold a total of 250 units for $60 each from March 1 through December 31.If the company uses the weighted-average inventory costing method,calculate the amount of ending inventory on December 31.(Assume that the company uses a perpetual inventory system.Round any intermediate calculations two decimal places,and your final answer to the nearest dollar. )

• A)$11,000
• B)$1,833.5
• C)$9,167
• D)$2,000

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

Finished Goods Inventory

Manufactured products that are complete and ready for sale.

Cost Of Goods Sold

The total direct costs attributable to the production of the goods sold in a company, including materials and labor.

Physical Units

A measure of quantity in production or inventory, typically referred to when counting tangible products or items.