RZM Store sells jeans. During January 2014, its inventory records for one brand of designer jeans were as follows: The cost of goods sold using the periodic average cost method is:

Quantity Price per pair Total

Beginning Inventory 10 pairs $20 $200

January 6 Purchase 4 pairs $25 $100

January 10 Sale 5 pairs N/A

January 15 Purchase 7 pairs $30 $210

January 20 Sale 10 pairs N/A

January 25 Purchase 4 pairs $30 $120

The cost of goods sold using the periodic average cost method is:

a) $358 b) $378 c) $265 d) $236

Question

Naomi Simon

Business

19 April, 12:13

RZM Store sells jeans. During January 2014, its inventory records for one brand of designer jeans were as follows: The cost of goods sold using the periodic average cost method is:

Quantity Price per pair Total

Beginning Inventory 10 pairs $20 $200

January 6 Purchase 4 pairs $25 $100

January 10 Sale 5 pairs N/A

January 15 Purchase 7 pairs $30 $210

January 20 Sale 10 pairs N/A

January 25 Purchase 4 pairs $30 $120

The cost of goods sold using the periodic average cost method is:

a) $358 b) $378 c) $265 d) $236

+4

Answers (1)

Know the Answer?

Mary Fischer · Answer 1

c) $265

Explanation:

Quantity Price per pair Total

Beginning Inventory 10 pairs $20 $200

January 6 Purchase 4 pairs $25 $100

Total 14 pairs $300

January 10 Sale 5 pairs N/A

9 pairs $192.85

January 15 Purchase 7 pairs $30 $210

16 pairs $ 402.85

January 20 Sale 10 pairs N/A

6 $ 151

January 25 Purchase 4 pairs $30 $120

Total 10 pairs $271

Average Cost per unit = $ 630 / 25 = $18

The cost of goods sold using the periodic average cost method is:

c) $265