Vestle Company uses the periodic inventory system. For January 2014, the beginning inventory consisted of 24,000 units that cost CHF12 each. During the month, the company made two purchases: 10,000 units at CHF13 each and 40,000 units at CHF13.50 each. Vestle sold 43,000 units during the month for CHF19.50 per unit. Using the average-cost method, what is the amount of cost of goods sold for the month of January 2014 (round per unit amount to two decimal places)?

Question

Quizplus · Accepted Answer

The average cost per unit is calculated as follows:(24,000 x CHF12) + (10,000 x CHF13) + (40,000 x CHF13.50) / 74,000 units = CHF13.25The cost of goods sold is calculated as follows:43,000 units x CHF13.25 = CHF569,750

Vestle Company Uses the Periodic Inventory System