Question

Marquis Company uses a weighted-average perpetual inventory system.

August 2 10 units were purchased at $12 per unit.
August 18 15 units were purchased at $14 per unit.
August 29 12 units were sold.
What is the amount of the cost of goods sold for this sale?
a. $121.38.b. $106.00.c. $160.00.

Answer 1

The correct answer is "$136.44"

Step-by-step explanation:

According to the question,

Total units will be:

=
`10 \ unit+15 \ unit`

=
`25 \ unit`

Average cost will be:

=
`([(10* 12)+(15* 14)])/(29)`

=
`(120+210)/(29)`

=
`(330)/(29)`

=
`11.38` ($)

hence,

The cost of sale will be:

=
`Units \ sold* Average \ cost`

=
`12* 11.38`

=
`136.44` ($)