Question

Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales:August 210 units were purchased at $12 per unit.August 1815 units were purchased at $14 per unit.August 2912 units were sold. What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.)A. $158.40B. $330.00C. $150.50D. $210.00E. $148.00

Answer 1

Answer:

cost of ending inventory = $158.40

so correct option is A. $158.40

Explanation:

given data

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

to find out

amount of the cost of goods sold

solution

we get here total purchase that is express as

total purchase = 10 × 12 + 15 × 14

total purchase = $330

total units purchase is = 10 +15 = 25

so weighted average cost will be

weighted average cost = $\frac{330}{25}$

weighted average cost = $13.2

cost of ending inventory = $13.2 × 12 units sold

cost of ending inventory = $158.40

so correct option is A. $158.40