Assume that three identical units of merchandise were purchased during October, as follows:
$$\begin{array} { | l | c | l | c | c | }
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & \underline { 1 } & \underline { 15 } \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$
-One unit is sold on October 31 for $28. Using the table provided, determine cost of goods sold under the average cost method.
A) $22
B) $17
C) $13
D) $11

Question

Assume that three identical units of merchandise were purchased during October, as follows:
 $$\begin{array} { | l | c | l | c | c | } 
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & \underline { 1 } & \underline { 15 } \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$
-One unit is sold on October 31 for $28. Using the table provided, determine cost of goods sold under the average cost method.  
A) $22
B) $17
C) $13
D) $11

Quizplus · Accepted Answer

The average cost per unit is calculated by dividing the total cost of goods available for sale by the total units available for sale, which is $33 / 3 = $11. Under the average cost method, the cost of goods sold for one unit would be $11.

Assume That Three Identical Units of Merchandise Were Purchased During