Reference no: EM132488956

Windrose, Inc. uses a periodic inventory system and its inventory records contain the following information:

                                                      Units                         Total Cost

Beginning inventory:               600                             $1,560

Purchased on May             10800                              2,340

Purchased on June               151,000                            2,520

Purchased on August           28600                              1,980

                                    3,000                               $8,400

The company sold 2,000 units during June. There were no additional purchases or sales during the remainder of the year. The company had 1,000 units were in its ending inventory at the end of the year.

Question 1: If Windrose uses the weighted average inventory costing method, what is the cost of its ending inventory? (Round the per unit cost to 2 decimal places and then round your answer to the nearest whole dollar.)

Multiple Choice

Option 1: $8,400

Option 2: $2,800

Option 3: $5,400

Option 4: $2,730