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Duo Ltd Uses a Periodic Inventory System and Rounds the Average

Question 17

Multiple Choice

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 2016:  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 \begin{array} { l l } \text { Opening inventory } & 15 \text { units @ average cost of } € 25 \text { each } \\\text { January purchases } & 10 \text { units @ €24 each } \\\text { July purchases } & 25 \text { units @ €26 each } \\\text { October purchases } & 20 \text { units @ €24 each } \\\text { Ending inventory } & 20 \text { units }\end{array}
The cost of ending inventory at 30 June 2016 using the weighted average cost method (rounded to the nearest euro) is:


A) €459;
B) €465;
C) €499;
D) €483.

Correct Answer:

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