Duo Ltd Uses a Periodic Inventory System and Rounds the Average

question 18

Multiple Choice

Duo Ltd uses a periodic inventory system and rounds the average unit cost to the nearest dollar. The following data relates to Duo Ltd for the year ended 30 June 2016: $\begin{array} { l l } \text { Opening inventory } & 15 \text { units @ average cost of } € 25 \text { each } \\\text { January purchases } & 10 \text { units @ €24 each } \\\text { July purchases } & 25 \text { units @ €26 each } \\\text { October purchases } & 20 \text { units @ €24 each } \\\text { Ending inventory } & 20 \text { units }\end{array}$
The cost of ending inventory at 30 June 2016 using the weighted average cost method (rounded to the nearest euro) is:

• A) €459;
• B) €465;
• C) €499;
• D) €483.

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