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White Cotton Ltd Uses a Periodic Inventories System and Rounds

Question 27

Multiple Choice

White Cotton Ltd uses a periodic inventories system and rounds the average unit cost to the nearest dollar. The following data relates to White Cotton Ltd for the year ended 30 June 2021.  Opening inventories 1000 units@average cost of $20 each  January purchases 2500 units@$22 each  February sales 1200 units  March sales returns 50 units  June sales 500 units  July purchases 3000 units @$25 each  August sales 2400 units  October purchases 5000 units @$24 each  November cales 4000 units \begin{array}{ll}\text { Opening inventories }&1000 \text { units@average cost of } \$ 20 \text { each }\\\text { January purchases }&2500 \text { units@\$22 each }\\\text { February sales } & 1200 \text { units } \\\text { March sales returns } & 50 \text { units } \\\text { June sales } & 500 \text { units }\\\text { July purchases } & 3000 \text { units @\$25 each } \\\text { August sales } & 2400 \text { units } \\\text { October purchases } & 5000 \text { units @\$24 each } \\\text { November cales } & 4000 \text { units }\end{array} The cost of goods sold for the year using the weighted average method is:


A) $194 400
B) $186 300
C) $193 200
D) $185 150

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