A company has beginning inventory of 300 units at $ 5.25 each; They purchased 400 units at $ 6.00 each on June 2; On June 15, they also purchased 500 units at $6.75 each. A physical count of merchandise inventory at the end of the month revealed that 600 units were sold. What is the cost of goods sold using the weighted average inventory method? Round all answers to the nearest dollar. But as always do not round any intermediate calculations, only round your final answer. Group of answer choices $6.125 $3,975 $7,350 $3,675

Question

String Bean

Business

21 April, 12:04

A company has beginning inventory of 300 units at $ 5.25 each; They purchased 400 units at $ 6.00 each on June 2; On June 15, they also purchased 500 units at $6.75 each. A physical count of merchandise inventory at the end of the month revealed that 600 units were sold. What is the cost of goods sold using the weighted average inventory method? Round all answers to the nearest dollar. But as always do not round any intermediate calculations, only round your final answer. Group of answer choices $6.125 $3,975 $7,350 $3,675

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Answers (1)

Know the Answer?

Julissa Greer · Answer 1

Solution:

Beginning inventory of 300 units at $ 5.25 each

Purchased 400 units at $ 6.00

Purchased 500 units at $6.75 each

Now,

$5.25 + [ ($6 : 400) * (600 - 300) ] = $1,131

= ($5.25 + 0.015) x 300

= 5.265 * 300

= $1580