Answer:
The total cost of goods sold = $37,500
Explanation:
Given:
Beginning inventory = 10,000 units at $3
Purchase inventory = 5,000 units at $4
Purchase inventory = 5,000 units at $5
Sale inventory = 10,000 units at $10
Total inventory units = [10,000 + 5,000 +5,000]
Total inventory units = [20,000]
Total Cost of inventory units = [(10,000×$3) + (5,000×$4) + (5,000×$5)]
Total Cost of inventory units = [$30,000 + $20,000 + $25,000]
Total Cost of inventory units = [$75,000]
Average price per unit = Total Cost of inventory units / Total inventory units
Average price per unit = $75,000 / 20,000
Average price per unit = $3.75
The total cost of goods sold = 10,000 units sold × $3.75
The total cost of goods sold = $37,500
