The beginning inventory for Westby Interiors consists of 100 units valued at $1,

Question

The beginning inventory for Westby Interiors consists of 100 units valued at $1,000 each, Three purchases of 80 units each were made during the year at $1,050, $1,100, and $1,200 per unit, respectively. A physical count reveals 35 units on hand on December 31, which is the end of the accounting period. Assuming that the company values inventory under a weighted-average system, what is the cost of goods sold for the current period? Round the per unit cost to two decimals.

$326,000.00

$340,583.31

$368,000.00

$330,117.75

$326,000.00

$340,583.31

$368,000.00

$330,117.75

Explanation / Answer

Weighted average unit cost = ( 100 * 1000 ) + ( 80 * 1050 ) + ( 80 * 1100 ) + ( 80 * 1200 ) / ( 100 + 80 + 80 + 80 )

$ 1082.35

Units sold = 100 + 80 + 80 + 80 - 35

= 305 units

cost of goods sold for the current period = 305 units * $ 1082.35

$ 330116.75

Option d is correct

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