Torago Sales uses a periodic inventory system with the weighted average method of cost assignment.The following data are available.
Date Units Unit Cost
$
Jan)6 Beginning inventory 600 10
15 Purchase 1500 11
26 Purchase 1000 12
3100
31 Sale 1000 20
Closing inventory 2100
To the nearest whole dollar what is the value of cost of sales for January?

Question

Quizplus · Accepted Answer

Using the weighted average method, we first calculate the average unit cost:

Total cost = (600 x 10) + (1500 x 11) + (1000 x 12) = 30600
Total units = 600 + 1500 + 1000 = 3100
Average unit cost = Total cost / Total units = 30600 / 3100 = 9.8709677 (rounded to 2 decimal places)

We can now use this average unit cost to calculate the cost of sales:
Cost of sales = 1000 x 9.8709677 = $9,870.97 (rounded to the nearest whole dollar)
Therefore, the best choice is C, with a cost of sales of $11,129.

Torago Sales Uses a Periodic Inventory System with the Weighted