Tedder Co. Tedder uses a periodic inventory system.At the end of January,20 units were on hand.The following additional information is available for the month of January:

-Refer to the information provided for Tedder Co.If the company uses the weighted average method of inventory costing,how much is cost of goods sold for January?

Question

Tedder Co. Tedder uses a periodic inventory system.At the end of January,20 units were on hand.The following additional information is available for the month of January:

-Refer to the information provided for Tedder Co.If the company uses the weighted average method of inventory costing,how much is cost of goods sold for January?

Quizplus · Accepted Answer

To calculate the cost of goods sold using the weighted average method, we need to first calculate the weighted average cost per unit.

Weighted average cost per unit = (Beginning inventory value + Purchases value) / (Beginning inventory units + Purchases units)
Weighted average cost per unit = [(20 x $10) + (30 x $12) + (25 x $13)] / (20 + 30 + 25) = $12.40

Now, we can calculate the cost of goods sold:
Cost of goods sold = (Ending inventory units x weighted average cost per unit) + (Units sold x weighted average cost per unit)
Cost of goods sold = (15 x $12.40) + (40 x $12.40) = $496

Therefore, the answer is B) $232.

Tedder Co Tedder Uses a Periodic Inventory System