Question

June 4 June 11 June 18 June 25 A. $2.21 C. $2.20 Units Received 30 60 20 50 Unit Cost You sell 100 units in $2.50 June. Calculate the cost of goods sold using cost averaging. $2.00 $2.60 $2.10 nternational Academy of Science. All Rights Reserved. B. $2.15 D. $2.17​

Answer 1

To calculate the cost of goods sold using cost averaging, we need to determine the average cost per unit based on the given information.

Step 1: Calculate the total cost of the units received:

(30 units * $2.21) + (60 units * $2.20) + (20 units * $2.18) + (50 units * $2.25) = $66.30 + $132.00 + $43.60 + $112.50 = $354.40

Step 2: Calculate the total number of units received:

30 units + 60 units + 20 units + 50 units = 160 units

Step 3: Calculate the average cost per unit:

Total cost of units received / Total number of units received = $354.40 / 160 units = $2.215 per unit (rounded to the nearest cent)

Step 4: Calculate the cost of goods sold:

100 units sold * $2.215 per unit = $221.50

Therefore, the cost of goods sold using cost averaging is $221.50.