Question

S Company began the year with 200 units of products at 10,000 VND each on January 1; purchased 100 units for 11,000 VND each on January 15; purchased 200 units for 11,500 VND each on January 28; sold 300 units. Calculate the cost of goods sold for January using average cost.

A. 3,200,000 VND
B. 3,350,000 VND
C. 3,250,000 VND
D. 3,100,000 VND

Answer 1

To calculate the cost of goods sold for January using average cost, you need to determine the average cost per unit of the products. The correct answer is D. 3,100,000 VND.

Step-by-step explanation:

To calculate the cost of goods sold for January using average cost, we need to determine the average cost per unit of the products. Here's how to calculate it:

1. Calculate the total cost of all units purchased: 200 units x 10,000 VND + 100 units x 11,000 VND + 200 units x 11,500 VND = 2,000,000 VND + 1,100,000 VND + 2,300,000 VND = 5,400,000 VND.
2. Calculate the total number of units purchased: 200 units + 100 units + 200 units = 500 units.
3. Divide the total cost by the total units to get the average cost per unit: 5,400,000 VND / 500 units = 10,800 VND.
4. Finally, multiply the average cost per unit by the number of units sold to calculate the cost of goods sold for January: 10,800 VND x 300 units = 3,240,000 VND

Therefore, the correct answer is D. 3,100,000 VND.