Use the following information for questions below
K-tel Industries had the following activity with one of its inventory items during the current period:
$$\begin{array}{l}
\text { }\
\begin{array} { l l l l }
&&\text {units }&\text { unit cost}\
\text { beginning}&\text {inventory }&30&\$8.00\
\text { purchase}&\text {december 5 }&8&10.5\
\text {sale }&\text {december 11 }&(40)\
\text {purchase }&\text {december 17}&60&12.00\
\text {sale }&\text {december 26 }&(70)\
\end{array}
\end{array}$$
-Using a perpetual inventory system and the weighted-average cost formula,the cost of goods sold for the December 11 sale was closest to
A)$540.
B)$420.
C)$393.
D)$370.

Question

Use the following information for questions below
K-tel Industries had the following activity with one of its inventory items during the current period:
$$\begin{array}{l}
\text { }\
\begin{array} { l l l l } 
&&\text {units }&\text { unit cost}\
\text { beginning}&\text {inventory }&30&\$8.00\
\text { purchase}&\text {december 5 }&8&10.5\
\text {sale }&\text {december 11 }&(40)\
\text {purchase }&\text {december 17}&60&12.00\
\text {sale  }&\text {december 26 }&(70)\
\end{array}
\end{array}$$
-Using a perpetual inventory system and the weighted-average cost formula,the cost of goods sold for the December 11 sale was closest to
A)$540.
B)$420.
C)$393.
D)$370.

Quizplus · Accepted Answer

- First, we need to calculate the weighted-average cost per unit. 
- Total cost of goods available for sale = (400 x $5.10) + (300 x $5.50) = $2,040 + $1,650 = $3,690 
- Total units available for sale = 400 + 300 = 700 
- Weighted-average cost per unit = $3,690 ÷ 700 = $5.27 
- The cost of goods sold for the December 11 sale = 75 x $5.27 = $395.25 
- Rounded to the nearest dollar, the answer is $393. Therefore, the best choice is C.

Use the Following Information for Questions Below K-Tel Industries Had

Use the Following Information for Questions Below
K-Tel Industries Had