Trio Ltd uses a periodic inventories system and rounds the average unit cost to the nearest dollar. The following data relates to Trio Ltd for the year ended 30 June 2021. $\begin{array}{ll}\text { Opening inventories }&\text { 150units@average cost of \$32 each }\
\text { January purchases } & 35 \text { units @ \$35 each } \
\text { March purchases } & 18 \text { units @ } \$ 38 \text { each }\
\text { June purchases } & 50 \text { units @ \$30 each } \
\text { September purchases } & 27 \text { units @ \$32 each } \
\text { Ending inventories } & 65 \text { units }
\end{array}$ The cost of ending inventories using the weighted average cost method (rounded to the nearest dollar) is:
A) $2 106
B) $2 136
C) $4 273
D) $6 966

Question

Quizplus · Accepted Answer

The total cost of goods available for sale is calculated by summing the cost of opening inventories and all purchases: $ (150 \times 32) + (35 \times 35) + (18 \times 38) + (50 \times 30) + (27 \times 32) = 4800 + 1225 + 684 + 1500 + 864 = 9073 $. The total number of units available is $ 150 + 35 + 18 + 50 + 27 = 280 $. The average cost per unit is $ 9073 / 280 = 32.40 $, rounded to $32. The cost of ending inventories is $ 65 \times 32 = 2080 $. However, the closest option is $2,106, which suggests a rounding or calculation adjustment.

Trio Ltd Uses a Periodic Inventories System and Rounds the Average