Consider the Following Inventory Transactions for September: for the Month

question 50

Multiple Choice

Consider the following inventory transactions for September: For the month of September,the company sold 35 units.What is cost of goods sold under the weighted-average cost method (round the weighted-average unit cost to four decimals and final answer to the nearest whole dollar) ?
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 15 \text { units } @ \$ 3.00 \\\hline \text { Purchase on September } 12 & 20 \text { units } @ \$ 3.50 \\\text { Purchased on September 23 } & 10 \text { units } @ \$ 4.00 \\\hline\end{array}$$

• A)$121.
• B)$116.
• C)$124.

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Definitions:

Period's End

Refers to the conclusion of a specific accounting or reporting period, such as the end of a quarter or fiscal year.

Book Value

The net value of an asset as recorded on a company's balance sheet, calculated by subtracting accumulated depreciation from the original purchase cost.

Market Value

The present rate at which a service or asset is available for purchase or sale.

Net Income

Net income is the total amount of profit a company earns after subtracting all of its expenses, taxes, and costs from its total revenue.