Given the following data, what is the gross margin if cost of goods sold is determined using the weighted-average method? $\begin{array} { | l | l | }
\hline \text { Sales revenue } & 200 \text { units at } \$ 20 \text { per unit } \
\hline \text { Beginning inventory } & 60 \text { units at } \$ 12 \text { per unit } \
\hline \text { Purchases } & 210 \text { units at } \$ 13 \text { per unit } \
\hline
\end{array}$

Question

Given the following data, what is the gross margin if cost of goods sold is determined using the weighted-average method? $\begin{array} { | l | l | } 
\hline \text { Sales revenue } & 200 \text { units at } \$ 20 \text { per unit } \
\hline \text { Beginning inventory } & 60 \text { units at } \$ 12 \text { per unit } \
\hline \text { Purchases } & 210 \text { units at } \$ 13 \text { per unit } \
\hline
\end{array}$

Quizplus · Accepted Answer

The weighted-average cost per unit is calculated as $(60 \times 12 + 210 \times 13) / (60 + 210) = 12.8$. The cost of goods sold is $200 \times 12.8 = 2,560$. Sales revenue is $200 \times 20 = 4,000$. Gross margin is $4,000 - 2,560 = 1,440$.

Given the Following Data, What Is the Gross Margin If