Question
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has a beginning inventory of 600 units that were purchased at $10 per unit, and the following purchases and sales.
Date Units sold Units purchased Cost per unit
January 10 300 $11
January 25 450
February 7 400 $12
February 14 200
March 5 300 $14
March 27 550
If the company uses a periodic inventory system and the weighted average cost method of inventory valuation, then what is the company's gross profit?
| a. | $17,325 | |
| b. | $18,300 | |
| c. | $13,725 | |
| d. | $15,125 | |
| e. | $16,275 |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
