Weighted Average Cost Method Requires Complete Inventory Data

Steps:

• Identify all inventory purchases before the sale to calculate total units and total cost.
• Compute weighted average cost: total cost ÷ total units available.
• Apply the average cost to units sold: average cost × 15 units.
• Not enough information: only one purchase shown (50 units at $4.00, total cost$200), implying average $4.00, but no prior inventory or additional purchases provided to yield$4.30.

Why B is correct:

• Not enough information to confirm, but if additional purchases existed (e.g., prior inventory raising average to $4.30 per WAC formula), it would match.

Why the others are wrong:

• A: Assumes no other inventory, yielding exact $4.00 average from given data.
• C: Possible if higher-cost purchases weighted average to $4.40, but unsupported.
• D: Suggests even higher prior costs, but no evidence.

Final answer: Not enough information.