If a Company Purchased 200 Units of Inventory at $9

question 57

Multiple Choice

If a company purchased 200 units of inventory at $9 per unit and 300 units at $10 per unit,its weighted average unit cost for this inventory would be:

• A)$9.00.
• B)$9.50.
• C)$9.60.
• D)$10.00.

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Definitions:

Accounting Period

The span of time at the end of which a company calculates its financial performance, typically a quarter or year.

Journalized

The act of recording a transaction in an accounting journal, documenting the financial activities of a business.

Retained Earnings

Represents the portion of net income that is retained by the company rather than being distributed to its owners or shareholders.

Utilities Expense

An expense incurred by a business for basic utilities, such as electricity, gas, and water, which are necessary for operations.