B E C > D Test 2 - Chapters 4 6 x - v O A 0 ezto.mhoducation.com/hm.tpx 1 * - -

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B E C > D Test 2 - Chapters 4 6 x - v O A 0 ezto.mhoducation.com/hm.tpx 1 * - - = 2 Save & Exit D x A ... Sulomita ( Question 2 (of 40) T?rne remainirig. 1.17.51 2. MC Qu. 128 Given the following information, determine... Given the following information, determine the cost of goods sold at December 31 using the weighted average periodic inventory method Decerriber 2. 16 uruts were purchased at $8.10 per urit. December 9 21 units were purchased at $10 50 per unit Doccribcr 11. 23 units were sold at $36.10 per unit. December 15. 31 units were purchased at $11.25 per unit. December 27 29 units were sold at $36 10 pcr unit O $698.85 O $569.25 O $518.85 O $663.85 O $534 41 References Multiple Choice MC Qu. 128 Given the following Information, determine... 2018 McGraw-Hill Education. All rights reserved. O Type here to search 20 e ON A A A & A & 2:32 PM 0 42/2018

Explanation / Answer

Under the weighted average periodic inventory method, average rate of inventory is calculated and then this rate is multiplied by the number of units sold to arrive at cost of goods sold

So, average rate

= Total value of opening Inventory and purchases / Total quantity of opening inventory and purchases

= ($698.85 / 68)

= $ 10.2772 per unit

Number of units sold

= 23 + 29

= 52 units

So, Cost of goods sold

= Number of units x Average rate

= 52 x $10.2772

= $534.41

So, as per above calculations, option E is the correct option

Calculations A B C = A x B Particulars Number of units Rate Amount 2-Dec 16 8.1 129.6 9-Dec 21 10.5 220.5 15-Dec 31 11.25 348.75 Total 68 698.85

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