Answer:
For the cost of goods sold, the company made around $42,435
Explanation:
Solve cost of goods for Jan. 1st:
2000 units × $8
$16,000
Solve for cost of goods during 2007:
5000 units × $10
$50,000
Use the formula for weighted-average cost:
WAC per unit = cost of goods available for sale / units available for sale
WAC per unit = 16,000 + 50,000 / 2000 + 5000
WAC per unit = 66,000 / 7000
WAC per unit = 9.42857..... I will round to a dollar value
WAC per unit = 9.43
For cost of goods sold:
4,500 × 9.43 (please keep in mind 9.43 is a rounded number)
$42,435
The cost of goods sold using weighted-average cost under Periodic inventory is $42,429
Before calculating the cost of goods sold, first we have to determine the weighted average cost per unit.
For this following formula should be used:
= (Opening units × cost per unit + purchased units × cost per unit) ÷ (opening units + purchased units)
= (2,000 units × $8 + 5,000 units × $10) ÷ (2,000 units + 5,000 units)
= ($16,000 + $50,000) ÷ (7,000 units)
= $66,000 ÷ 7,000 units
= $9.428
Now the cost of goods sold using weighted-average cost is
= Number of units sold × average cost per unit
= 4,500 units × $9.428
= $42,429
Hence, we conclude that the cost of goods sold using weighted-average cost under Periodic inventory is $42,429.
Learn more about the cost of goods sold here: brainly.com/question/14292529
