Mama\'s Mexican Meals, Inc., had the following activity for an inventory item du
ID: 2559815 • Letter: M
Question
Mama's Mexican Meals, Inc., had the following activity for an inventory item during June:
Units
Unit
Cost
Beginning inventory
50
$10
Purchase (June 5).
20
16
Purchase (June 15)
30
14
Sale (June 20).
40
Sale (June 25).
20
Purchase (June 30)
10
20
Assuming Mama's uses a periodic weighted average cost flow assumption, cost of goods sold for June would be
a.
$512
b.
$560
c.
$768
d.
$785
Units
Unit
Cost
Beginning inventory
50
$10
Purchase (June 5).
20
16
Purchase (June 15)
30
14
Sale (June 20).
40
Sale (June 25).
20
Purchase (June 30)
10
20
Explanation / Answer
d. $785 Weighted Average Date Particulars Units Cost Amount COGS 1-Jun Beginning Inventory 50.00 10.00 500.00 5-Jun Purchase 20.00 16.00 320.00 15-Jun Purchase 30.00 14.00 420.00 30-Jun Purchase 10.00 20.00 200.00 Total 110.00 13.09 1,440.00 COGS = 40 + 20 60.00 13.09 785.45 60*13.09 Ending Inventory 50.00 13.09 654.55 50*13.09 COGS 785.45 Ending Inventory 654.55
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