Reference no: EM132736448

ABC Corp. had the following inventory transactions for the month of December 20X5:

Date   Transaction type     Amount (units)      Price per unit

Dec. 1 Opening balance    400                        $5.12

Dec. 3 Purchase          1,100                           $5.23

Dec. 15 Purchase          900                         $5.48

Dec. 22 Purchase            250                     $5.66

Dec. 2 Sale                     300                       $6.50

Dec. 6 Sale                  800                      $6.50

Dec. 18 Sale               700                        $8.00

Dec. 25 Sale              150                       $8.00

Problem 1: What is the value of the inventory held by ABC as at December 31, 20X5, if the company values its inventory using the weighted average cost formula and uses a perpetual inventory system? Round all calculations to two significant decimal places, for example, $5.66.

a) $ 3,735

b) $ 3,834

c) $ 3,881

d) $10,314