The Xu Corporation uses a periodic inventory system. The company has a beginning
ID: 2546471 • Letter: T
Question
The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 1,250 units at $15 each on January 1. Xu purchases 1,500 units at $14 each in February and 700 units at $16 each in March. There were no additional purchases or sales during the remainder of the year.
Xu sells 650 units during the quarter. If Xu uses the weighted average method, what is its cost of goods sold for the quarter? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
$9,750
$10,400
$9,100
$9,599
The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 1,250 units at $15 each on January 1. Xu purchases 1,500 units at $14 each in February and 700 units at $16 each in March. There were no additional purchases or sales during the remainder of the year.
Xu sells 650 units during the quarter. If Xu uses the weighted average method, what is its cost of goods sold for the quarter? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
$9,750
$10,400
$9,100
$9,599
Explanation / Answer
The answer is $ 9599
Weighted Average Cost per unit = (1250 units x $15) + (1500 Units x $14) + (700 units x $16) / 3450 Units
= $ 50950/ 3450 Units
= $ 14.7681 per unit
Cost of goods sold = 650 units sold x $ 14.7681 per unit
= $ 9599
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