Use the following information for questions 46-48.
Birken Bark Industries had the following activity with one of its inventory items during the current period:
-Using a perpetual inventory system and the weighted-average cost formula, the cost of goods sold for the October 11 sale was closest to

Question

Use the following information for questions 46-48.
Birken Bark Industries had the following activity with one of its inventory items during the current period: 
-Using a perpetual inventory system and the weighted-average cost formula, the cost of goods sold for the October 11 sale was closest to

Quizplus · Accepted Answer

Using the weighted-average cost formula:
Total cost of goods available for sale = (100 @ $4.00) + (200 @ $4.50) = $1,400
Weighted-average cost per unit = $1,400 ÷ 300 = $4.67
Cost of goods sold for the October 11 sale = 90 @ $4.67 = $420. Therefore, the closest answer is option B ($420).

Use the Following Information for Questions 46-48