The inventory record for a particular item for Year 2 appears below.
$\begin{array}{|l|l|l|l|}
\hline \text { Inventory, January 1, Year 2 } & 20,000 & \$ 0.20 & \$ 4,000 \
\hline \text { Purchases: } & & & \
\hline \text { March 2 } & 4,000 & .24 & \$ 960 \
\hline \text { April 30 } & 3,000 & .28 & 840 \
\hline \text { June 15 } & 6,000 & .32 & 1,920 \
\hline \text { September 30 } & 2,000 & .26 & 520 \
\hline \text { December } 15 & 1.000 & .20 & 200 \
\hline \text { Total purchases } & 16.000 & & \$ 4,440 \
\hline \text { Total available for sale } & 36,000 & & \$ 8,440 \
\hline \text { Units sold } & 28,000 & & \
\hline
\end{array}$ Refer to the Inventory Record example.The cost of goods sold for year 2 under weighted-average cost-flow assumption is (rounded to the nearest dollar):
A)$7,772
B)$6,972
C)$6,564
D)$6,220
E)$6,020

Question

Quizplus · Accepted Answer

The weighted-average cost per unit is calculated by dividing the total cost of goods available for sale ($8,440) by the total units available for sale (36,000 units), resulting in an average cost of $0.2344 per unit. Multiplying this average cost by the number of units sold (28,000 units) gives the cost of goods sold: $0.2344 * 28,000 = $6,563.2, which rounds to $6,564.

The Inventory Record for a Particular Item for Year 2