Answer:
For the cost of goods sold, the company made around $42,435
Explanation:
Solve cost of goods for Jan. 1st:
2000 units × $8
$16,000
Solve for cost of goods during 2007:
5000 units × $10
$50,000
Use the formula for weighted-average cost:
WAC per unit = cost of goods available for sale / units available for sale
WAC per unit = 16,000 + 50,000 / 2000 + 5000
WAC per unit = 66,000 / 7000
WAC per unit = 9.42857..... I will round to a dollar value
WAC per unit = 9.43
For cost of goods <em>sold</em>:
4,500 × 9.43 (please keep in mind 9.43 is a rounded number)
$42,435
