Answer:
Williams reports as cost of goods sold on the income statement the amount: $20,625
Explanation:
March: 3/1 Beginning Inventory 5,000 units at $2, total: $10,000
March: 3/7 Purchase 2,500 units at $3, total: $7,500
March: 3/16 Purchase 2,500 units at $4, total: $10,000
In March,
Total inventory purchased:
5000 units, cost: $7,500 + $10,000 = $17,500
Williams Co. uses a periodic inventory system and weighted average method, the cost per unit the company sold:
($10,000 + $17,500)/(5,000+5,000)=$27,500/10,000 = $2,75
Williams sold 7,500 units, Cost of goods sold = $2,75 x 7,500 = $20,625
