Reference no: EM132627616

Date              Transaction                Number of Units                   Unit Cost

March 1       Beginning inventory           1,000                             $7.20

March 10        Purchase                           600                          $7.25

March 16         Purchase                           800                          $7.30

March 23        Purchase                          600                            $7.35

Question 1: When prices for raw materials and other purchased good are increasing LIFO valuation will result in a higher Cost of Goods Sold than if the inventory is being valued using FIFO. Weighted Average will result in a cost between the LIFO and FIFO costs. Using the data above and the Weighted Average approach what will be the cost of sales if 1500 units are sold in March?

Option 1: $10.850

Option 2: $10,975

Option 3: $10,905

Option 4: $21,800

Option 5: $15,205