Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6

question 23

Multiple Choice

Table 6-6 Sam's Wholesale Bikes $$\begin{array} { | l | l | } \hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \\\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \\\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \\\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \\\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \\\hline\end{array}$$
-Refer to Table 6-6. What is the cost of goods sold for the two months assuming that Sam's uses the perpetual weighted-average inventory method?

• A)$38,772
• B)$42,523
• C)$49,700
• D)$46,996

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Definitions:

Sales Price

The amount of money a buyer pays to purchase a product or service from a seller.

Contribution Margin Ratio

A ratio that measures the portion of sales revenue that exceeds variable costs, indicating how sales affect profitability.