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murzikaleks [220]
3 years ago
12

During 2021, a company sells 500 units of inventory for $95 each. The company has the following inventory purchase transactions

for 2021:Calculate cost of goods sold and ending inventory for 2021 assuming the company uses the weighted-average cost method

Business
1 answer:
Kryger [21]3 years ago
6 0

Answer:

cost of goods sold = $36,285

ending inventory = $1,742

Explanation:

when you use the weighted average cost method you have to calculate the COGS using the total number of units and the total amount paid for them.

beginning inventory = 71 units for $5,325

purchase 1 = 262 units for $18,864

purchase 2 = 187 units for $13,838

total 524 units for $38,027

cost per unit = $38,027 / 524 units = $72.57

cost of goods sold = 500 units x $72.57 = $36,285

ending inventory = 24 units x $72.57 = $1,741.68 ≈ $1,742

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