Kitchen Company Uses the Perpetual Inventory Method

question 66

Multiple Choice

Kitchen Company uses the perpetual inventory method. On January 1, 2013, the company's first day of operations, Kitchen purchased 400 units of inventory that cost $2.50 each. On January 10, 2013, the company purchased an additional 600 units of inventory that cost $3.00 each. If Kitchen uses a weighted average cost flow method and sells 550 units of inventory, the amount of inventory appearing on balance sheet following the sale will be approximately:

• A)$1,540.
• B)$1,513.
• C)$1,260.
• D)$1,238.

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