Question

Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 40 units were purchased at $27 per unit. August 18, 24 units were purchased at $29 per unit. August 29, 42 units were sold. What was the amount of the cost of goods sold for this sale?

Answer 1

Answer:Cost of goods sold=$1,165.5

Step-by-step explanation:

Using the weighted-average perpetual inventory system.

August 2 =40 units x $27per unit = $1080

August 18=24units x $29 per unit = $696

Weighted average cost per unit = (1080 + 696)/64 = $27.75per unit

Therefore, Cost of goods sold = $27.75 x 42 = $1,165.5