Questions
COMM_2010-100 COMM 2010 Midterm Exam #2 (SP25)
Single choice
A company uses the periodic inventory method. The July 1 inventory consisted of 200 units at a total cost of $1,250. The company sold 10 units on July 14 for $120. Purchases for the month were as follows: Date Number of Units Unit Cost July 5 20 $5.80 July 22 80 $5.50 What is the company's weighted average cost of goods sold for July? (Round intermediary calculations to two decimals.)
Options
A.$65.00
B.$55.60
C.$62.50
D.$62.10
E.$60.20
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Step-by-Step Analysis
We start by identifying the data given and what is being asked: using the periodic inventory method, determine the weighted average cost per unit for July and then compute COGS for the 10 units sold.
First, compute the cost and quantity of the beginning inventory: 200 units costing 1,250 total, which implies a beginning unit cost of 1,250 / 200 = 6.25 per unit.
Next, tally the purchases for the month: on July 5, 20 unit......Login to view full explanationLog in for full answers
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