Answer:
<u>COGS 6,786.75</u>
<u></u>
Explanation:
<u>First, </u>We calculate the beginning inventory:
5,496 x 1/3 = 1,832 bottles x $1 February = $ 1,832
5,495 x 1/3 = 1,832 bottles x $1.25 March = $ 2,748
5,495 x 1/3 = 1,832 bottles x $1.75 April = $ 3,206
<u>Second,</u> We start subtract the first units from the sales until get zero
<em>sales 4,925 </em>
<u>-1,832</u> february bottles 1,832
<em> 3,093</em>
<u>-1,832</u> march bottles 2,748
<em> 1,261</em>
<u>-1,261</u> April bottles x 1.75 = 2,206.75
<em> 0</em>
<u>Third</u>, we add them to get the COGS
COGS 6,786.75
