Use the information above to answer the following question.Acme sells 150 units during the quarter.If Acme uses the weighted average method,what is its cost of goods sold for the quarter?
A)$600
B)$705
C)$750
D)$900

Question

Quizplus · Accepted Answer

Using the weighted average method, we first calculate the total cost of goods available for sale:
(50 units x $5) + (100 units x $7) = $550
We then divide that by the total number of units available for sale:
50 units + 100 units = 150 units
$550 / 150 units = $3.67 per unit (rounded to two decimal places)
Finally, we multiply the cost per unit by the number of units sold to get the cost of goods sold:
$3.67 per unit x 150 units = $550.50, rounded to the nearest dollar
Therefore, the best choice is B, $705.

Use the Information Above to Answer the Following Question