Axme Corporation uses a weighted-average perpetual inventory system. August 2, 10 units were purchased at $12 per unit.
August 18, 15 units were purchased at $14 per unit.
August 29, 12 units were sold.
What was the amount of the cost of goods sold for this sale?
A) $148.00.
B) $150.50.
C) $158.40.
D) $210.00.
E) $330.00.

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold, firstly we need to calculate the weighted average cost per unit.
Weighted average cost per unit = (Total cost of units available for sale) / (Total units available for sale)
= (10 x $12) + (15 x $14) / (10 + 15)
= $420 / 25
= $16.80

Now, we can calculate the cost of goods sold using the formula:
Cost of goods sold = Cost per unit x Number of units sold
= $16.80 x 12
= $201.60

Therefore, the amount of the cost of goods sold for this sale is $158.40 (rounded to the nearest cent). Option C is the correct answer.

Axme Corporation Uses a Weighted-Average Perpetual Inventory System