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SB The Xu Corporation uses a periodic ... The following information applies to t

ID: 2545787 • Letter: S

Question

SB The Xu Corporation uses a periodic ... The following information applies to the questions displayed below.] The Xu Corporation uses a periodic Inventory system. The company has a beginning Inventory of 1,850 units at $21 each on January 1, Xu purchases 2,100 units at $20 each In February and 1,000 units at $22 each in March. There were no additional purchases or sales during the remainder of the year. References Section Break SB The Xu Corporation uses a periodic ... value: 1.50 points MC Qu.82 Xu sells ... Xu sells 950 units during the quarter. If Xu uses the weighted average method, what is its cost of goods sold for the quarter? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) O $20,900 O $19,000 $19,950 O $19,739

Explanation / Answer

Answer to first question

Calculation of Weighted Average Cost per unit = Total Cost / Total Units Available

Total Cost= (1850@21 ) + (2100@20 ) + ( 1000@22 )

                        = $ 102850

Total Units Available = 1850 + 2100 + 1000 Units

                                    = 4950 Units

Cost per unit = $ 102850 / 4950 Units

                        = $ 20.77 Unit

Therefore, Cost of goods sold = 950 Units Sold x $ 20.77

                                                = $ 19739