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A company, at the beginning of its January 1 fiscal year, reported a beginning inventory of 500 units at a cost of $ 200 per unit. Over the first quarter, the company made the following purchases: January 10 purchase of 200 units at a cost of $130 = $26,000 February 7 purchase of 300 units at a cost of $150 = $45,000 March 5 purchase of 250 units at a cost of $200 = $50,000In addition, the company made the following sales: End of February sales of 200 units End of March sales of 150 units
Required:
Problem i) Under the periodic inventory system compute the Weighted Average Cost (WAC) at the end of the first quarter: and the allocation to the cost of goods sold and ending inventory
Problem ii) Determine the Weighted Average Cost (WAC) prior to the sales of 200 Units in February
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