Marquis Company uses a weighted-average perpetual inventory system.
August 2 10 units were purchased at $12 per unit.
August 18 15 units were purchased at $14 per unit.
August 29 12 units were sold.
What is the amount of the cost of goods sold for this sale?
a. $121.38.b. $106.00.c. $160.00.

Respuesta :

Answer:

The correct answer is "$136.44"

Explanation:

According to the question,

Total units will be:

= [tex]10 \ unit+15 \ unit[/tex]

= [tex]25 \ unit[/tex]

Average cost will be:

= [tex]\frac{[(10\times 12)+(15\times 14)]}{29}[/tex]

= [tex]\frac{120+210}{29}[/tex]

= [tex]\frac{330}{29}[/tex]

= [tex]11.38[/tex] ($)

hence,

The cost of sale will be:

= [tex]Units \ sold\times Average \ cost[/tex]

= [tex]12\times 11.38[/tex]

= [tex]136.44[/tex] ($)