Acompany has a beginning inventory of $ 20 comma 000 and purchases during the year of $ 130 comma 000. the beginning inventory consisted of 3 comma 000 units and 6 comma 000 units were purchased during the year. the company has 5000 units left at yearminusend. under averageminuscost, what is cost of goods sold? (round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

$66,680

Explanation:

The computation of the cost pf goods sold is shown below:

= Number of units sold × average cost per unit

where,

Number of units sold equals to

= Beginning inventory units  + purchased units - ending inventory units units

= 3,000 units + 6,000 units - 5,000 units

= 4,000 units

Now the average cost per unit would be

= (Beginning inventory + purchases) ÷ (Beginning inventory units + purchased units)

= ($20,000 + $130,000) ÷ (3,000 units + 6,000 units)

= $16.67

Now put these values to the above formula  

So, the value would equal to

= $4,000 units × $16.67

= $66,680

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Explanation:

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