Tedder uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January:

-Refer to the information provided for Tedder Co. If the company uses the weighted average method of inventory costing, how much is cost of goods sold for January?

Question

Tedder uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January:
 
-Refer to the information provided for Tedder Co. If the company uses the weighted average method of inventory costing, how much is cost of goods sold for January?

Quizplus · Accepted Answer

The weighted average cost per unit is calculated by dividing the total cost of goods available for sale by the total units available for sale. For Tedder Co., if the total cost of goods available for sale and the total units available are not provided directly in the question, we typically sum the costs of all purchases and beginning inventory for the period and divide by the total number of units purchased and in beginning inventory to find the average cost per unit. Then, to find the cost of goods sold (COGS) for January, we multiply this average cost per unit by the number of units sold in January. Without the specific numbers provided in the question, the calculation process involves these steps, leading to the correct answer of $232 based on the information that would have been given.

Tedder Uses a Periodic Inventory System