Inventory records for Dunbar Incorporated revealed the following:
$$\begin{array} { l l c r }
\text { Date } & { \text { Transaction } } & \begin{array} { c }
\text { Number } \
\text { of Units }
\end{array} & \begin{array} { r }
\text { Unit } \
\text { Cost }
\end{array} \
\text { Apr. 1 } & \text { Beginning inventory } & 500 & \$ 2.40 \
\text { Apr. 20 } & \text { Purchase } & 400 & 2.50
\end{array}$$
Dunbar sold 700 units of inventory during the month.Cost of goods sold assuming weighted-average cost would be (round weighted-average unit cost to four decimals if necessary):

Question

Inventory records for Dunbar Incorporated revealed the following:
$$\begin{array} { l l c r } 
\text { Date } & { \text { Transaction } } & \begin{array} { c } 
\text { Number } \
\text { of Units }
\end{array} & \begin{array} { r } 
\text { Unit } \
\text { Cost }
\end{array} \
\text { Apr. 1 } & \text { Beginning inventory } & 500 & \$ 2.40 \
\text { Apr. 20 } & \text { Purchase } & 400 & 2.50
\end{array}$$
Dunbar sold 700 units of inventory during the month.Cost of goods sold assuming weighted-average cost would be (round weighted-average unit cost to four decimals if necessary):

Quizplus · Accepted Answer

The weighted-average cost per unit is calculated as: [(500 units * $2.40) + (400 units * $2.50)] / 900 units = $2.4444. The cost of goods sold for 700 units is 700 * $2.4444 = $1,711.08, rounded to $1,711.

Inventory Records for Dunbar Incorporated Revealed the Following Dunbar Sold 700 Units of Inventory During the Month