Given the Following Information, Determine the Cost of Ending Inventory

question 32

Multiple Choice

Given the following information, determine the cost of ending inventory at December 31 using the weighted average perpetual inventory method. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.

• A)$51.75
• B)$83.22
• C)$41.30
• D)$49.75
• E)$50.75

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Definitions:

Consumption

The action of using goods and services for personal needs or wants.

Annual Variations

Fluctuations in economic indicators or values that occur on a yearly basis due to various factors such as seasonal patterns or cyclical trends.

Disposable Income

Households’ financial capacity for savings and expenditure after income tax obligations are met.

Consumption Spending

The total value of all goods and services consumed by households and individuals.