PuLL M5 ucides diu Sdles Omalom Sales
Purchases
20 units at $110
20 units at $120
January:
February:
May:
November:
15 units
10 units at $130
Using the weighted average inventory costing method, what is the value of the cost of goods sold on May?
$2,650
B. $2,670
C. $4,240
$1,725

d. $1,725

Explanation:

Note: The organized question is attached below

Cost of goods available for sale as on May

=> 20 * $110 = $2,200

=> 20 * $120 = $2,400

Total cost of goods available for sale = $2,200 + $2,400 = $4,600

Weighted average cost per unit = Cost of goods available for sale / Units in inventory

Weighted average cost per unit = $4,600 / (20 + 20)

Weighted average cost per unit = $4,600 / 40

Weighted average cost per unit = $115

Cost of goods sold by using weighted average method on May = Units sold * Weighted average cost per unit = 15 * $115 = $1,725

So therefore, the value of the cost of goods sold on May is $1,725

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