Reference no: EM132591982

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

Question 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