Moon Uses a Periodic Inventory System with the Weighted Average

question 45

Multiple Choice

Moon uses a periodic inventory system with the weighted average method of cost assignment.The following data are available: $\begin{array}{ccc}\text { Date }& \text { Units Unit }& \text { Cost \$}\\\text { Jan } 6 \text { Beginning inventory } & 1000 & 10 \\15 \text { Purchase } & 2000 & 11 \\26 \text { Purchase } & 1000 & 12\\& 4000 \\31 \text { Sale } & 1000&20\\\text { Closing inventory }&3000\end{array}$ What is the value of cost of sales for January?

• A)$10 000
• B)$11 000
• C)$12 000
• D)$20 000

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Definitions:

IRR

Internal Rate of Return; a metric in finance that helps in calculating the expected profitability of prospective investments.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Project

A project is a temporary endeavor designed to produce a unique product, service, or result, typically with defined goals and constraints.

Mutually Exclusive

Situations or choices where the selection of one option precludes the selection of another, often used in decision-making processes.