A company had the following purchases and sales during its first month of operations: $$\begin{array} { | l | l | }
\hline \text { January } 1 & \text { Purchased } 10 \text { units at } \$ 4.00 \text { per unit } \
\hline \text { January } 9 & \text { Sold } 6 \text { units at } \$ 12.00 \text { per unit } \
\hline \text { January } 17 & \text { Purchased 8 units at } \$ 5.50 \text { per unit } \
\hline \text { January } 27 & \text { Sold } 7 \text { units at } \$ 12.00 \text { per unit } \
\hline
\end{array}$$ 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.)
A) $23.
B) $5.
C) $27.
D) $61.
E) $84.

Question

A company had the following purchases and sales during its first month of operations: $$\begin{array} { | l | l | } 
\hline \text { January } 1 & \text { Purchased } 10 \text { units at } \$ 4.00 \text { per unit } \
\hline \text { January } 9 & \text { Sold } 6 \text { units at } \$ 12.00 \text { per unit } \
\hline \text { January } 17 & \text { Purchased 8 units at } \$ 5.50 \text { per unit } \
\hline \text { January } 27 & \text { Sold } 7 \text { units at } \$ 12.00 \text { per unit } \
\hline
\end{array}$$ 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.)
A) $23.
B) $5.
C) $27.
D) $61.
E) $84.

Quizplus · Accepted Answer

The weighted average cost per unit is calculated as total cost of goods available for sale divided by total units available for sale: $(10 \times 4) + (8 \times 5.5) = 77$ and $10 + 8 = 18$ units, so the average cost is $77/18 = 4.28$. The cost of goods sold for 13 units (6 + 7) is $13 \times 4.28 = 55.64$, rounded to $61.

A Company Had the Following Purchases and Sales During Its