Answer:
$151,673
Explanation:
Average cost method calculate the cost of the inventory on the average price basis. Cost of goods sold is the cost of the goods sold in the given period.
Description Units Rate Value
Beginning Inventory 7,400 $11.00 $81,400
Purchases 3,100 $12.00 $37,200
Purchases <u>12,200 $12.50 $152,500</u>
Total Inventory 22,700 $11.94273128 $271,100
Sale 12,700 $11.94273128 $151,673
Cost of Goods Sold = $271,100 x 12,700 / 22,700 = $151,673
