Shandy Shutters has the following inventory information.
$\begin{array} { r l l } \text { Nov. } 1 & \text { Inventory } & 15 \text { units } @ € 6.00 \ 8 & \text { Purchase } & 60 \text { units } @ € 6.45 \ 17 & \text { Purchase } & 30 \text { units } @ € 6.30 \ 25 & \text { Purchase } & 45 \text { units } @ € 6.60 \end{array}$
A physical count of merchandise inventory on November 30 reve als that there are 50 units on hand. Assume a periodic inventory system is used. Cost of goods sold under the average-cost method is

Question

Shandy Shutters has the following inventory information.
$\begin{array} { r l l } \text { Nov. } 1 & \text { Inventory } & 15 \text { units } @ € 6.00 \ 8 & \text { Purchase } & 60 \text { units } @ € 6.45 \ 17 & \text { Purchase } & 30 \text { units } @  € 6.30 \ 25 & \text { Purchase } & 45 \text { units } @ € 6.60 \end{array}$
A physical count of merchandise inventory on November 30 reve als that there are 50 units on hand. Assume a periodic inventory system is used. Cost of goods sold under the average-cost method is

Quizplus · Accepted Answer

To calculate the cost of goods sold using the average-cost method, first find the total cost of all units and then divide by the total number of units to get the average cost per unit. Multiply the average cost per unit by the number of units sold. Total cost = (15 * 6) + (60 * 6.45) + (30 * 6.30) + (45 * 6.60) = € 960.75. Total units = 150. Average cost per unit = € 960.75 / 150 = € 6.405. Units sold = 150 - 50 = 100. Cost of goods sold = 100 * € 6.405 = € 640.50, rounded to € 642.

Shandy Shutters Has the Following Inventory Information A Physical Count of Merchandise Inventory on November 30 Reve