A Company Uses the Weighted-Average Method of Inventory Valuation Under

question 140

Multiple Choice

A company uses the weighted-average method of inventory valuation under a periodic inventory system.The company began the year with a zero inventory balance.They had the following transactions during the year. 1.Purchased 65 units at $6 per unit
2) Purchased 130 units at $6 per unit
3) Sold 110 units at $12 per unit
4) Purchased 60 units at $7 per unit
5) Sold 110 units at $13.25 per unit
At the end of the year,the company counted the inventory and found 35 units remaining.Calculate the cost of goods sold for the year.(Round the unit costs to two decimal places and total costs to the nearest dollar.)

• A) $6
• B) $218
• C) $1,590
• D) $1,372

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Definitions:

Statement of Owner's Equity

A financial document that shows the changes in the equity of a company's owner over a period of time.

Fiscal Period

A specific timeframe, often one year, used by businesses for accounting purposes and preparing financial reports.

Accounting Period

A specific duration of time in which financial transactions are recorded and financial statements are prepared, commonly a year or a month.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for general reporting and taxation purposes.