Answer:
Correct Choice is $ 1200.
Explanation:
To calculate cost of ending inventory with the help of weighted average method of inventory valuation in case of periodic inventory system, first we have to calculate the unit cost.
In Periodic inventory system, Weighted average unit cost can be calculated as;
Weighted average Unit Cost = Total Cost of Inventory in Hand/ Total inventory/units in Hand ---------- (I)
Considering given data of the problem,
Beginning inventory = 10 units
Purchases = 20 units
Total units in Hand = Beginning Inventory + Purchases
Total units in Hand = 10 units + 20 units = 30 units
Cost of inventory available for sale/Cost of inventory in hand = $ 3,000
Putting the values in equation (I), we get ;
Weighted average Unit Cost = $ 3,000/30
Weighted average Unit Cost = $ 100
According to given information of the problem/question, ending inventory is composed of 12 units.
Thus, Ending inventory = 12 units x $ 100 = $ 1,200.
