Question

The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 1,250 units at $15 each on January 1. Xu purchases 1,500 units at $14 each in February and 700 units at $16 each in March. There were no additional purchases or sales during the remainder of the year.

Xu sells 650 units during the quarter. If Xu uses the weighted average method, what is its cost of goods sold for the quarter? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
A) $9,750
B) $10,400
C) $9,100
D) $9,599

Answer 1

The correct answer is A.

Step-by-step explanation:

Giving the following information:

The Xu Corporation uses a periodic inventory system.

The company has a beginning inventory of 1,250 units at $15 each on January 1.

Xu purchases 1,500 units at $14 each in February and 700 units at $16 each in March.

Xu sells 650 units during the quarter.

Average price= (15 + 14 + 16)/3= 15

Cost of goods sold= 15*650units= $9,750