Lewis Inc.had the following balances and transactions during 2014: What would the Cost of Goods Sold be as reported on the income statement for the year ending December 31,2014 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places.)

Question

Lewis Inc.had the following balances and transactions during 2014:  What would the Cost of Goods Sold be as reported on the income statement for the year ending December 31,2014 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places.)

Quizplus · Accepted Answer

Under the perpetual weighted-average costing method, the cost of goods sold is calculated based on the average cost of all units sold during the period. 
Calculation: 
Total cost of inventory available for sale = $8,000 + $2,400 = $10,400 
Total number of units available for sale = 200 + 80 = 280 
Weighted-average cost per unit = Total cost of inventory available for sale / Total number of units available for sale 
= $10,400 / 280 = $37.14 
Cost of goods sold = 160 units sold x $37.14 per unit = $5,942.40 
Therefore, the Cost of Goods Sold as reported on the income statement for the year ending December 31, 2014 if the perpetual weighted-average costing method is used would be $16,240.

Lewis IncHad the Following Balances and Transactions During 2014: What