Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: August 211 units were purchased at $2 per unit. August 1816 units were purchased at $4 per unit. August 2913 units were sold. What is the amount of the cost of goods sold for this sale

$41.41

Explanation:

The Weighted Average Cost Method recalculates the unit cost after every new purchase. The goods are then sold at the recent calculated average cost before the sale.

Average Cost Before sale = Total Cost ÷ Units Available for sale

                                           = ( 11 units × $2 + 16 units × $4) ÷ ( 11 units + 16 units)

                                           = $3.185

Therefore,

Cost of Goods Sold = Units Sold × Average Unit Cost Before sale

                                 = 13 units × $3.185

                                 = $41.41

Conclusion :

The amount of the cost of goods sold for this sale is $41.41.

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