Determining inventories cost and cost of sales (periodic method)  LO3, 4 Select the correct answer. Show any workings required and provide reasons to justify your choice. 1. The cost of inventories on hand at 1 January 2020 was $25 000 and at 31 December 2020 was $35 000. Inventories purchases for the year amounted to $160 000, freight outwards expense was $500, and purchase returns were $1400. What was the cost of sales for the year ended 31 December 2020?

(a) $148 100

(b) $148 600

(c) $149 100

(d) $150 000 2. The following inventories information relates to K Cooroy, who uses a periodic method and rounds the average unit cost to the nearest dollar. Beginning inventories 10 units @ average cost of $25 each = $250 January purchase 10 units @ $24 each July purchase 39 units @ $26 each October purchase 20 units @ $24 each Ending inventories 25 units What is the cost of ending inventories using the weighted average costing formula?

(a) $625

(b) $620

(c) $618.75

(d) $610