Acme-Jones Corporation uses a weighted average perpetual inventory system. August 2, 10 units were purchased at $12 per unit.
August 18, 15 units were purchased at $14 per unit.
August 29, 12 units were sold.
What was the amount of the cost of goods sold for this sale?
A)$148.00
B)$150.50
C)$158.40
D)$210.00
E)$330.00

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold in a weighted average perpetual inventory system, we must first calculate the weighted average cost per unit. 
The total cost of the purchases is ($12 x 10) + ($14 x 15) = $300. The total number of units purchased is 10 + 15 = 25. 
Therefore, the weighted average cost per unit is $300/25 = $12.
The cost of goods sold for the 12 units sold is 12 x $12 = $144. 
Therefore, the correct answer is C) $158.40, which is the nearest option to $144 when adding 5% ($7.20) for gross profit.

Acme-Jones Corporation Uses a Weighted Average Perpetual Inventory System