A company had the following purchases and sales during its first month of operations: Using the Periodic weighted average method,what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places,and final answer to the nearest whole dollar.)
A)$84.
B)$61.
C)$23.
D)$27.
E)$5.

Question

A company had the following purchases and sales during its first month of operations:  Using the Periodic weighted average method,what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places,and final answer to the nearest whole dollar.)
A)$84. 
B)$61. 
C)$23. 
D)$27. 
E)$5.

Quizplus · Accepted Answer

To calculate the periodic weighted average cost per unit, we need to divide the total cost of goods available for sale ($522) by the total number of units available for sale (13).

Total cost of goods available for sale: 
10 units x $51 = $510 
3 units x $33 = $99 
Total = $510 + $99 = $609

Total units available for sale = 10 + 3 = 13

Periodic weighted average cost per unit = $609 / 13 = $46.85 (rounded to $46.84)

To calculate the cost of goods sold, we need to multiply the number of units sold (7) by the weighted average cost per unit ($46.85).

Cost of goods sold = 7 x $46.85 = $327.96

Rounding to the nearest dollar, the value of cost of goods sold is $328.

Therefore, the best choice is B) $61.

A Company Had the Following Purchases and Sales During Its