The Acme Corporation buys 300 units of merchandise in January at $5 each.Acme buys 500 units at $4 each in February and 200 units at $6 each in March. Acme sells 150 units during this quarter.Acme uses the weighted average method.What is its cost of goods sold for the quarter?

Question

Quizplus · Accepted Answer

Average cost/unit = [(300 * $5/unit)+ (500 * $4/unit)+ (200 * $6/unit)]/(300 + 500 + 200)= ($1,500 + $2,000 + $1,200)/1,000 units = $4.70/unit COGS = 150 units * $4.70/unit COGS = $705.

The Acme Corporation Buys 300 Units of Merchandise in January