A company has a beginning inventory of $ 60,000 and purchases during the year of $ 90,000. The beginning inventory consisted of 4,000 units and 9,000 units were purchased during the year. The company has 5,000 units left at yearminusend. Under averageminus cost, what is Cost of Goods Sold? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

Question

Kolby York

Business

13 August, 04:42

A company has a beginning inventory of $ 60,000 and purchases during the year of $ 90,000. The beginning inventory consisted of 4,000 units and 9,000 units were purchased during the year. The company has 5,000 units left at yearminusend. Under averageminus cost, what is Cost of Goods Sold? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

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Adrian Webb · Answer 1

Cost of goods sold 103,860

Explanation:

beginning 4,000 units at $60,000

purchases 9,000 units at $90,000

Cost of goods available 13,000 units at $150,000

average cost 11.54 (rounded to two decimal places)

13,000 units of goods for sale - 5,000 ending inventory = 9,000 units sold

cost of goods sold 9,000 x 11.54 = 103,860