Reference no: EM132768900

Question -

1) 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 = $50,000

In addition, the company made the following sales:

End of February sales of 200 units

End of March sales of 150 units

Required -

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

ii) Determine the Weighted Average Cost (WAC) prior to the sales of 200 Units in February

2) The contribution to sales ratio (C/S ratio) of product Z is 30%. Copen Limited, the manufacturer of product Z, wishes to make a contribution of Kshs. 90,000 towards fixed costs. How many units of product Z must be sold if the selling price is Kshs. 15 per unit?