Given the following information, determine the cost of goods sold at December 31 using the weighted average periodic inventory method: December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
A)$282.15
B)$332.10
C)$290.70
D)$284.70
E)$210.30

Question

Quizplus · Accepted Answer

First, we need to calculate the weighted average cost per unit:

December 2: 5 units x $7 per unit = $35
December 9: 10 units x $9.40 per unit = $94
December 15: 20 units x $10.15 per unit = $203

Total cost = $332
Total units = 35 + 10 + 20 = 65

Weighted average cost per unit = $332 / 65 = $5.1077 (rounded to four decimal places)

Next, we need to calculate the cost of goods sold:

December 11: 12 units sold at $35 per unit = $420
December 22: 18 units sold at $35 per unit = $630

Total cost of goods sold = 12 units x $5.1077 + 18 units x $5.1077 = $284.70 (rounded to two decimal places)

Therefore, the cost of goods sold at December 31 using the weighted average periodic inventory method is $284.70 (choice D).

Given the Following Information, Determine the Cost of Goods Sold