Leinart Co. had the following inventory transactions for the period. Calculate t
ID: 2445358 • Letter: L
Question
Leinart Co. had the following inventory transactions for the period. Calculate the cost of goods sold using the average costs method (Do not round until final answer).
Date
Quantity
Purchase
Cost
Selling
Price
July 1
Beginning Inventory
350
$1
July 10
Sale
150
$5
July 14
Purchase
400
2
July 17
Sale
300
6
July 28
Purchase
200
4
$1,123.69
$845.13
$1,026.32
$923.68
$1,050.00
PLEASE EXPLAIN WHY ANSWER IS D
Leinart Co. had the following inventory transactions for the period. Calculate the cost of goods sold using the average costs method (Do not round until final answer).
Date
Quantity
Purchase
Cost
Selling
Price
July 1
Beginning Inventory
350
$1
July 10
Sale
150
$5
July 14
Purchase
400
2
July 17
Sale
300
6
July 28
Purchase
200
4
Selected Answer:[None Given]
Answers: A.$1,123.69
B.$845.13
C.$1,026.32
D.$923.68
E.$1,050.00
PLEASE EXPLAIN WHY ANSWER IS D
Explanation / Answer
The answer is D as per below workings Leinart Co Calculation of Cost of Goods sold Quantity Unit cost Total Opening Inventory 350 $ 1.00 $ 350.00 Purchases: Jul-14 400 $ 2.00 $ 800.00 Jul-28 200 $ 4.00 $ 800.00 Less Closing Inventory 500 $ 2.05 $ 1,026.32 Cost of Goods sold 450 $ 2.05 $ 923.68 Workings Calculation of Closing Inventory Quantity Unit cost Total Opening Inventory 350 $ 1.00 $ 350.00 Purchases: Jul-14 400 $ 2.00 $ 800.00 Jul-28 200 $ 4.00 $ 800.00 Less: Sales Jul-10 150 $ 5.00 $ 750.00 Jul-17 300 $ 6.00 $ 1,800.00 Closing Inventory (average cost) 500 $ 2.05 $ 1,026.32
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