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Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 265 $ 153 6/5 Purchase 465 $ 173 11/10 Purchase 165 $ 213 During the year, Maxim sold 530 units. What is cost of goods sold using the average cost method? (Do not round intermediate computations.)

Respuesta :

Answer:

Cost of goods sold as per average cost method = $92,458.5

Explanation:

As for the information provided as follows:

Opening Inventory             265 units     @         $153 each      = $40,545

Purchase                             465 units     @         $173 each      = $80,445

Purchase                             165  units     @         $213 each      = $35,145

Total data                            895 units                                        = $156,135

Average cost per unit = $156,135/895 = $174.45

In average cost method simple average is performed, whereas in weighted average weights are assigned.

Sale is of 530 units

Cost of goods sold as per average cost method = $174.45 [tex]\times[/tex] 530 = $92,458.5 Â