Respuesta :
Answer:
By $105 amount would Shoe-less report cost of goods sold using the weighted-average cost flow assumption.
Explanation:
Given information:
March 1 - Beginning Inventory = 20 × $2 =$40
March 7 - Purchase = 15 ×$3 =$45
March 11 - Sale = 30 × $7 = $210
March 12- Purchase = 15 × $6 = $90
By using this information, we can calculate the cost of goods sold under weight-age average method.
Steps for calculating the COGS :
1. First we have to calculate the average price per unit . For this we have to divide the total cost by total units. In weight-age average method, the sale part is not considered
Total cost = $40+$45+$90
= $175
Total unit = 20+15+15
= 50 units
Therefore,
Average price per unit = Total cost ÷ total units
= $175 ÷ 50 units
= 3.5 price per unit
Now, we calculate the cost of goods sold
= Purchase inventory of 7th march + Purchase inventory of 12 march * Price per unit
= 15 +15 × 3.5
= 30 * 3.5
= $105
Thus, By $105 amount would Shoe-less report cost of goods sold using the weighted-average cost flow assumption.
Answer:
The cost of goods sold is $105
Explanation:
Cost of goods sold is also termed as cost of sales , in this amount all the cost related to direct expenses will be included. Direct expenses like labor cost , cost incurred while producing the goods etc are included in the cost of goods sold, while indirect expenses like cost incurred in distribution of goods is not included in the cost of goods sold.
The cost flow assumption here is an assumption under which we are taking out the cost of sales or ending inventory by adding all the cost(related to direct expenses) and then divide the total cost by number of units that were purchased, from this we will get the average price per unit. The next step is to multiply this per unit cost by the number of units that were sold.
First step to calculate the total cost -
DATE QUANTITY PRICE AMOUNT(QUANTITY X PRICE)
1 MARCH 20 $2 $40 (OPENING INVENTORY)
7 MARCH 15 $3 $45 (PURCHASE)
12 MARCH 15 $6 $90 (PURCHASE)
TOTAL 50(UNITS) $175 (TOTAL COST)
Next step is to take out the cost per unit -
[tex]\frac{total cost}{number of units purchased}[/tex]
[tex]\frac{\$ 175}{50}[/tex]
Therefore the per unit cost is $3.5
And the last step is to multiply the per unit cost by the number of unit sold,
COGS(Cost of good sold) = number of units sold x per unit cost
= 30 x $3.5
= $105
