Homework SourseThe following data is available for one of the products sold
The following data is available for one of the products sold by Learning Tree, Inc., which uses the perpetual inventory system:
If the moving average method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10?
| May 1 | On hand, 1,000 units at $2.00 each | $2,000 | ||
| 5 | Purchased 2,000 units at $2.75 each | 5,500 | ||
| 10 | Sold 2,500 units at $16 each | |||
| 18 | Purchased 2,000 units at $4.00 each | 8,000 | ||
| 24 | Sold 1,500 units at $12 each | |||
| 31 | On hand, 1,000 units |
Solution
on May 10, there are 3000 units with a total cost of $7,500. Average cost per unit = 7500/3000 = 2.5
Thus, cost of goods sold = 2500*2.5 = 6250
