Big Games for Big Kids Sell a Variety of Gaming

Big Games for Big Kids sell a variety of gaming consoles and games. It has presented you with the following information for the sales of a new product Angel's Hat 2 for the three months from November to January. They began November with 50 units on hand valued at $1,500. In the lead up to Christmas each unit sold for $90 but in the post Christmas sales in January this price was reduced to $50.

Big Games for Big Kids use the periodic system to record inventory. A physical stock take reveals 30 units on hand at the end of January. What is the cost of sales and value of ending inventory using the weighted average cost-flow assumption?

A) Cost of sales: $14,190 Ending inventory: $1,290
B) Cost of sales: $14,060 Ending inventory: $1,420
C) Cost of sales: $14,190 Ending inventory: $ 900
D) Cost of sales: $24,850 Ending inventory: $1,420
E) Cannot be determined from the above information.