31
Jan

Hi, I was wondering if someone could help me with the Cost of goods sold, and Ending inventory in this question. for the Weighted average method.

Check out the screenshot: http://img405.imageshack.us/img405/4083/…


Answer:
Periodic is easier than perpetual. Take the total cost $15,150, divide by the total no. of units 1,050 to get average cost per unit $14.42857

No. of units sold : 590 x $14.42857, so COGS = 8,512.86

Ending no. of units is 460 x $14.42857 = $6,637.15

If you use 2 decimal places for the cost per unit your answers will be slightly different.

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