Lemke Corp. uses a perpetual inventory system with a (moving) weighted average inventory costing method. The following information is available for the month of April:

-Refer to the information provided for Lemke Corp. How much is the cost of goods sold for the units sold on April 15th?

Question

Lemke Corp. uses a perpetual inventory system with a (moving) weighted average inventory costing method. The following information is available for the month of April:
 
-Refer to the information provided for Lemke Corp. How much is the cost of goods sold for the units sold on April 15th?

Quizplus · Accepted Answer

To calculate the cost of goods sold for April 15th, we need to determine the cost of each unit sold on that day.

From the information provided, we know that the total cost of goods available for sale in April was $3,720 and the total number of units available for sale in April was 120.

To calculate the weighted average cost per unit, we divide the total cost of goods available for sale by the total number of units available for sale:

Weighted Average Cost per Unit = Total Cost of Goods Available for Sale ÷ Total Number of Units Available for Sale
Weighted Average Cost per Unit = $3,720 ÷ 120
Weighted Average Cost per Unit = $31

Therefore, the cost of goods sold for the units sold on April 15th (8 units) is:

Cost of Goods Sold = Number of Units Sold × Weighted Average Cost per Unit
Cost of Goods Sold = 8 units × $31
Cost of Goods Sold = $248

The closest answer choice to $248 is C)$260. Therefore, the correct answer is C) $260.