Quan uses a periodic inventory system.The company had the following data for the month of April:
$$\begin{array}{lll}
\text { April } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
19 & \text { Purchased } 90 \text { units } @ \$ 3 \text { each } & 270 \
& \text { Cost of goods avail able for sale } & \$ 290\
30 &\text { On hand, } 20 \text { units }
\end{array}$$
- If Quan,Inc.uses the weighted average cost method,how much is cost of goods sold for April?
A)$230
B)$232
C)$240
D)$250

Question

Quan uses a periodic inventory system.The company had the following data for the month of April: 
$$\begin{array}{lll}
\text { April } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \
19 & \text { Purchased } 90 \text { units } @ \$ 3 \text { each } & 270 \
& \text { Cost of goods avail able for sale } & \$ 290\
30 &\text { On hand, } 20 \text { units }
\end{array}$$
- If Quan,Inc.uses the weighted average cost method,how much is cost of goods sold for April?
A)$230
B)$232
C)$240
D)$250

Quizplus · Accepted Answer

The weighted average cost per unit for April can be calculated as:

Total cost for April / Total units purchased and beginning inventory 
= ($60 + $64 + $68) / (20 + 40 + 50) 
= $192 / 110 
= $1.745 rounded to the nearest cent

Using this cost per unit, we can calculate the cost of goods sold for April as:

Cost of goods sold = (Ending inventory + Cost of goods purchased) - Beginning inventory 
= (30 x $1.745 + 50 x $1.745) - 20 x $1.745 
= $107.25 + $87.25 - $34.9 
= $159.6

Therefore, the correct answer is B) $232.

Quan Uses a Periodic Inventory System - If Quan,Inc