Dupont Ltd Uses a Periodic Inventory System with the Specific

question 22

Multiple Choice

Dupont Ltd uses a periodic inventory system with the specific identification method of cost assignment. $\begin{array}{lrrr}&\text { Date }&\text {Units }&\text {Unit Cost \$}\\\text { Beginning Inventory } & \text { July 1 } & 1000 & 10 \\\text { Purchase } & 10 & 2000 & 11 \\\text { Purchase } & 20 & 1000 & 13\end{array}$ On 25 July 500 units from beginning inventory and 1500 units from the 10 July purchase were sold.What was the value of ending inventory at 31 July?

• A)$10 500
• B)$23 500
• C)$26 000
• D)$34 500

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range.

Variable Cost

Costs that vary directly with the level of production or volume of goods and services produced.

Sales Mix

Sales mix is the proportion of different products or services that a company sells, impacting its overall profitability and strategic market positioning.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the capacity to cover fixed costs and generate profit.