Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: August 2 14 units were purchased at $5 per unit. August 18 19 units were purchased at $7 per unit. August 29 16 units were sold. What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.)

Answer :

Answer:

Cost of goods sold = $98.40

Explanation:

given data

August 2              14 units   purchased @ $5 per unit.

August 18             19 units   purchased @ $7 per unit

August 29            16 units  sold

to find out

amount of the cost of goods sold for this sale

solution

cost of 14 units  = 14 × $5 per unit = $70

and

cost of 19 units  = 19 × $7 per unit = $133

so that here

Weighted average cost pr unit will be

Weighted average cost pr unit =  [tex]\frac{70+133}{14+19}[/tex]

Weighted average cost pr unit =   $ 6.15 per unit

so that Cost of goods sold will be

Cost of goods sold = $6.15 × 16

Cost of goods sold = $98.40

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