Question

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?

Answer 1

Calculating the cost of goods sold:

According to the given table,

The total cost of purchase on $2^{nd}$ August was, $10\times 12=\$120$

The total cost of purchase on ${18}^{th}$ August was, $15\times 14=\$210$

Total units purchased were, $10+15=25$

Hence, the average cost of purchase of goods was,

$$\begin{gathered} \Rightarrow \frac{\mathrm{Total}\mathrm{cost}}{\mathrm{Total}\mathrm{items}\mathrm{purchased}} \\ \Rightarrow \frac{120+210}{25} \\ \Rightarrow \$13.20 \end{gathered}$$

Therefore, the cost of selling goods is,

$$\begin{gathered} \Rightarrow \mathrm{average}\mathrm{cost}\times \mathrm{total}\mathrm{items}\mathrm{sold} \\ \Rightarrow 13.20\times 12 \\ \Rightarrow \$158.40 \end{gathered}$$

Hence, the amount of cost of goods sold for the sale is $\$158.40$