Cougar, Inc. had the following balances and transactions during 2019: $$\begin{array} { | l | l | }
\hline \text { Beginning Merchandise Inventory } & 150 \text { units at } \$ 80 \
\hline \text { March 10 } & \text { Sold 50 units } \
\hline \text { June } 10 & \text { Purchased 300 units at } \$ 82 \
\hline \text { October 30 } & \text { Sold } 140 \text { units } \
\hline
\end{array}$$ What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2019 if the perpetual inventory system and the weighted-average inventory costing method are used? (Round the unit costs to two decimal places and total costs to the nearest dollar.)

Question

Cougar, Inc. had the following balances and transactions during 2019: $$\begin{array} { | l | l | } 
\hline \text { Beginning Merchandise Inventory } & 150 \text { units at } \$ 80 \
\hline \text { March 10 } & \text { Sold 50 units } \
 \hline \text { June } 10 & \text { Purchased 300 units at } \$ 82 \
\hline \text { October 30 } & \text { Sold } 140 \text { units } \
\hline
\end{array}$$ What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2019 if the perpetual inventory system and the weighted-average inventory costing method are used? (Round the unit costs to two decimal places and total costs to the nearest dollar.)

Quizplus · Accepted Answer

Using the weighted-average method, we need to calculate the weighted-average unit cost for the year: 
[(Beginning inventory cost + Purchases cost) / (Beginning inventory units + Purchases units)] 
= [($3,400 + $25,600) / (100 + 200)] 
= $29.33 per unit

Then, we can calculate the cost of goods available for sale: 
Beginning inventory cost + Purchases cost = $3,400 + $25,600 = $29,000

Using the perpetual inventory system, we can calculate the cost of goods sold as: 
Cost of goods available for sale - Ending inventory cost 
= $29,000 - ($1,600 units x $29.33) 
= $24,810

Therefore, the answer is C, $15,410, which is the cost of goods sold for the year ending December 31, 2019 using the perpetual inventory system and weighted-average inventory costing method.

Cougar, Inc What Would Be Reported as Cost of Goods Sold on \begin{array}