What is the amount of cost of goods sold for the year according to the average cost method?
A) $1,380
B) $1,375
C) $1,510
D) $1,250

Question

Quizplus · Accepted Answer

Average cost per unit = [($61 × 5 units) + ($63 × 15 units) + ($74 × 10 units) + ($77 × 10 units)] / (5 units + 15 units + 10 units + 10 units) = $69
Cost of goods sold for the year using the average cost method = $69 × 20 units = $1,380

What Is the Amount of Cost of Goods Sold for the Year