Answer:
The Cost of Merchandise Sold or Cost Of Goods Sold COGS =
Total Costs of Units Available for Sale = $3,000.00
Weighted Average Cost = $133.33.00
COGS = (Total Costs of Units Available for Sale + Weighted Average Cost)
COGS = $3,000.00 + $133.33.00
COGS = $399,990.00
Explanation:
SOLUTION
Actual Cost of All Inventory (ACOI) = (Beginning of Inventory + Purchases)
Beginning of Inventory = $1,000.00
Purchases = $3,000.00
ACOI = $1000.00 + $3,000.00
ACOI = $4,000.00.
Total Units of Inventory = (Beginning of Inventory units + Purchases units)
Beginning of Inventory units = 10 Units
Purchases units = 20 Units
Total Units of Inventory = 10 + 20
Total Units of Inventory = 30 Units.
The Weighted Average Cost
WAC = Actual cost Of Inventory ÷ Total Units of Inventory
Actual cost Of Inventory = $4,000.00
Total Units of Inventory = 30 Units
WAC = $4,000.00 ÷ 30 Units
WAC = $133.33
Ending Inventory = Ending inventory x WAC
Ending Inventory = 12 units x $133.33
Ending Inventory = $1,599.96
The Cost of Merchandise Sold or Cost Of Goods Sold COGS =
Total Costs of Units Available for Sale = $3,000.00
Weighted Average Cost = $133.33.00
COGS = (Total Costs of Units Available for Sale + Weighted Average Cost)
COGS = $3,000.00 + $133.33.00
COGS = $399,990.00
