A Company Had 60 Units of Inventory at a Cost

question 48

Multiple Choice

A company had 60 units of inventory at a cost of $15 each on January 1. On March 25, the company purchased 40 units for $17 each. On July 10, the company purchased 20 units for $18 each. Given this information, determine the weighted average unit cost under the periodic inventory method. (Do not round your intermediate calculations; round the final answer to nearest whole cent.)

• A)$16.67
• B)$17.00
• C)$18.00
• D)$16.17
• E)$15.00

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Definitions:

Statement Of Changes In Equity

A financial statement that details the movements in equity accounts during a specific period, including share capital, reserves, and retained earnings.

Resources

Assets or items of value owned by a company or individual, which can be used to produce goods, provide services, or generate income.

Corporation

A legal entity recognized by law that is separate from its owners, with the ability to own assets, incur liabilities, and sell shares to investors.

Assets

Resources owned or controlled by a business, expected to produce economic value or benefits in the future.