A company uses the weighted-avernge method of inventory valuation under a period

Question

A company uses the weighted-avernge method of inventory valuation under a periodic inventory systom The company began the year with a zero inventory belance They had the folowing transactions during the year 1. Purchased 64 units at $5 per uni 2 Purchased 110 units al $5 per unit 3. Sold 90 units at $10 per unit 4. Purchased 55 units at $6 per unit 5 Sold 90 units at $13.50 per unit Al the end of the year, the company counted the inventory and found 49 units remaining. Calculate the cost of goods sold for the year (Round the unit costs to two decimal places and total costs to the nearest dellar.) O A $1,200 .$257 Click to select your answer MacBook Air 3 5

Explanation / Answer

Calculate cost of goods sold :

Average cost per unit = 1200/229 =5.24 per unit

Cost of goods sold = (229-49)*5.24 = 943

so answer is d) $943

Units Cost First purchase 64 320 Second purchase 110 550 Third purchase 55 330 Total 229 1200

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