Beta Company uses a periodic inventory system.The company bought 80 units of inventory for $12 each and 20 units of inventory for $12.50 each.It sold 90 units for $25 each.Beta's weighted average cost is:
A)$12.10.
B)$12.25.
C)$16.50.
D)$12.

Question

Quizplus · Accepted Answer

The weighted average cost is calculated by dividing the total cost of goods available for sale by the total units available for sale. Total cost = (80 units * $12) + (20 units * $12.50) = $960 + $250 = $1210. Total units = 80 + 20 = 100. Weighted average cost = $1210 / 100 units = $12.10.

Beta Company Uses a Periodic Inventory System