A company had the following purchases and sales during its first month of operations: Using the Periodic weighted average method,what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places.)
A)$84.
B)$61.
C)$23.
D)$27.
E)$5.

Question

A company had the following purchases and sales during its first month of operations:  Using the Periodic weighted average method,what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places.)
A)$84. 
B)$61. 
C)$23. 
D)$27. 
E)$5.

Quizplus · Accepted Answer

Using the periodic weighted average method, we first need to calculate the weighted average cost per unit:
Total units purchased = 200 + 400 = 600
Total cost of purchases = (200 x 10) + (400 x 12) = 2800
Weighted average cost per unit = 2800/600 = 4.67 (rounded to 2 decimal places)

Now, we can calculate the cost of goods sold:
Units sold = 300
Cost of goods sold = 300 x 4.67 = $1401
Therefore, the closest option is B) $61.

A Company Had the Following Purchases and Sales During Its