Use this information to answer the following question. A periodic inventory system is used.
-Cost of goods sold under the average-cost method is
A)$444.
B)$333.
C)$435.
D)$222.

Question

Use this information to answer the following question.  A periodic inventory system is used.
-Cost of goods sold under the average-cost method is
A)$444. 
B)$333. 
C)$435. 
D)$222.

Quizplus · Accepted Answer

The average-cost method calculates the cost of goods sold by taking the total cost of inventory available for sale and dividing it by the total units available for sale. The resulting average cost per unit is then multiplied by the number of units sold to determine the cost of goods sold. In this case, the calculation results in $444.

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