Given the following data, calculate the dollar amount of goods available for sale of using the average- cost method.

Question

Quizplus · Accepted Answer

To calculate the dollar amount of goods available for sale using the average-cost method, we need to find the total cost of goods available for sale and divide it by the total units available for sale.
Total cost of goods available for sale = (300 × 5) + (500 × 6) + (200 × 7) = $5100
Total units available for sale = 300 + 500 + 200 = 1000
Average cost per unit = Total cost of goods available for sale / Total units available for sale
= $5100 / 1000
= $5.10
Therefore, dollar amount of goods available for sale using the average-cost method = $5.10 × 228 = $1,164.00

Given the Following Data, Calculate the Dollar Amount of Goods