Question

The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 650 units at $9 each on January 1. Xu purchases 900 units at $8 each in February and 400 units at $10 each in March. There were no additional purchases or sales during the remainder of the year. Xu sells 350 units during the quarter. If Xu uses the weighted average method, what is its cost of goods sold for the quarter

Answer 1

COGS= $3,150

Step-by-step explanation:

Giving the following information:

beginning inventory of 650 units at $9 each

purchases 900 units at $8 each

purchases 400 units at $10 each

Xu sells 350 units during the quarter.

First, we need to calculate the weighted average cost:

weighted average cost= (9 + 8 + 10)/3= 9

Now, the cost of goods sold:

COGS= 350*9= $3,150