Use the information above to answer the following question.If BetterBuy uses the weighted average method,its cost of goods sold will be:
A)$2,900.
B)$2,950.
C)$3,040.
D)$3,033.

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold using the weighted average method, we need to divide the total cost of goods available for sale by the total number of units available for sale.

Total cost of goods available for sale = (150 units x $20) + (250 units x $22) = $3,500
Total number of units available for sale = 150 units + 250 units = 400 units

Weighted average cost per unit = total cost of goods available for sale / total number of units available for sale
= $3,500 / 400 units
= $8.75 per unit

Cost of goods sold = Number of units sold x Weighted average cost per unit
= 260 units x $8.75 per unit
= $2,275

Therefore, the correct answer is C) $3,040.

Use the Information Above to Answer the Following Question