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Homework answers / question archive / Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 140 $11 5/5 Purchase 120 $13 5/15 Purchase 300 $15 5/25 Purchase 450 $17 Sales were 440 units at $25
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:
Date Activity Quantity Unit Price
5/1 Beginning Inventory 140 $11
5/5 Purchase 120 $13
5/15 Purchase 300 $15
5/25 Purchase 450 $17
Sales were 440 units at $25. Using the Weighted Average method, determine the dollar value of Cost of Goods Sold for the month of May.
Computation of the dollar value of cost of goods sold:-
Weighted average cost per unit = Total cost / Total number of units
= ((140 * $11) + (120 * $13) + (300 * $15) + (450 * $17)) / (140 + 120 + 300 + 450)
= ($1,540 + $1,560 + $4,500 + $7,650) / 1,010
= $15,250 / 1,010
= $15.10
Cost of goods sold = Number of units sold * Weighted average cost per unit
= 440 * $15.10
= $6,643.56
