Given the Following Information, Determine the Cost of Ending Inventory

question 5

Multiple Choice

Given the following information, determine the cost of ending inventory at December 31 using the weighted average perpetual inventory method. Assume this is the first month of the company's operations. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 12: 2 units were sold.

• A)$17.20
• B)$111.80
• C)$129.00
• D)$94.00
• E)$8.60

---

Definitions:

Utility Function

A mathematical model used in economics to represent a consumer's preference ranking for different bundles of goods, showing satisfaction levels.

Consumption

The act of using goods and services to satisfy needs or wants.

Income

Financial gain derived from various sources such as employment, investments, or proprietorship, contributing to an individual's wealth.

Price

The monetary cost anticipated, called for, or disbursed in payment for an object.