Given the Following Information, Determine the Cost of Goods Sold

question 73

Multiple Choice

Given the following information, determine the cost of goods sold at December 31 using the weighted average perpetual inventory method. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.

• A)$282.30
• B)$332.10
• C)$281.25
• D)$290.70
• E)$210.30

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Definitions:

Economic Profit

calculated as the difference between a firm's total revenue and its total costs, recognizing both explicit and implicit costs, emphasizes a firm's real financial health.

Monopolistically Competitive Firm

A firm that operates in a market structure characterized by many firms selling products that are similar but slightly differentiated, leading to some degree of market power.

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, homogenous products, free entry and exit, and perfect information.

Long-Run Equilibrium

A state in which all factors of production and variables in the market are at a balance, with no external pressures causing change in the short term.