Duo Ltd uses a periodic inventory system and rounds the average unit cost to the nearest dollar. The following data relates to Duo Ltd for the year ended 30 June 2013:
Opening inventory 15 units @ average cost of $25 each
January purchases 10 units @ $24 each
July purchases 25 units @ $26 each
October purchases 20 units @ $24 each
Ending inventory 20 units
The cost of ending inventory using the weighted average cost method (rounded to the nearest dollar) is:
A) $459
B) $465
C) $499
D) $483

Question

Quizplus · Accepted Answer

The Answer of Duo Ltd uses a periodic inventory system and rounds the average unit cost to the nearest dollar. The following data relates to Duo Ltd for the year ended 30 June 2013:
Opening inventory 15 units @ average cost of $25 each
January purchases 10 units @ $24 each
July purchases 25 units @ $26 each
October purchases 20 units @ $24 each
Ending inventory 20 units
The cost of ending inventory using the weighted average cost method (rounded to the nearest dollar) is:
A) $459
B) $465
C) $499
D) $483

Duo Ltd Uses a Periodic Inventory System and Rounds the Average