Quan uses a periodic inventory system.At the end of April, Quan had 20 units on hand. April $\begin{array}{ll}
1&\text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
19&\text { Purchased } 90 \text { units } @ \$ 3 \text { each } & \$ 270 \
&\text { Goods available for sale } & \$ 290
\end{array}$ ? If Quan, Inc.uses the weighted average cost inventory method, how much is cost of goods sold for April?
A) $240
B) $250
C) $230
D) $232

Question

Quizplus · Accepted Answer

The weighted average cost per unit is calculated by dividing the total cost of goods available for sale ($290) by the total units available for sale (100 units). This gives $2.90 per unit. To find the cost of goods sold for April, subtract the cost of the ending inventory (20 units * $2.90 = $58) from the total cost of goods available for sale ($290). This results in a cost of goods sold of $232.

Quan Uses a Periodic Inventory System ? If Quan, Inc