194k views
1 vote
Bonita uses the periodic inventory system. For the current month, the beginning inventory consisted of 7300 units that cost $12.00 each. During the month, the company made two purchases: 3100 units at $13.00 each and 12000 units at $13.50 each. Bonita also sold 13100 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month

1 Answer

2 votes

Answer:

$169,514

Step-by-step explanation:

[(7,300 × $12) + (3,100 × $13) + (12,000 × $13.50] ÷(7,300 + 3,100 + 12,000)

=87,600+40,300+162,000÷22,400

=289,900÷22,400

=$12.94

Hence;

$12.94 × 13,100 = $169,514

Therefore using the average cost method, the amount of cost of goods sold for the month will be 169,514

User NothingMore
by
8.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.