Question

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 1

Cost of goods sold = $98.40

Step-by-step 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 =
`(70+133)/(14+19)`

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