Marquis company uses a weighted-average perpetual inventory system and has the following purchases and sales: august 2 14 units were purchased at $5 per unit. august 18 19 units were purchased at $7 per unit. august 29 16 units were sold. what is the amount of the cost of goods sold for this sale? (round average cost per unit to 2 decimal places.)

Cost of goods sold = $98.40

Explanation:

given data

August 2              14 units   purchased @ $5 per unit.

August 18             19 units   purchased @ $7 per unit

August 29            16 units  sold

to find out

amount of the cost of goods sold for this sale

solution

cost of 14 units  = 14 × $5 per unit = $70

and

cost of 19 units  = 19 × $7 per unit = $133

so that here

Weighted average cost pr unit will be

Weighted average cost pr unit =  

Weighted average cost pr unit =   $ 6.15 per unit

so that Cost of goods sold will be

Cost of goods sold = $6.15 × 16

Cost of goods sold = $98.40

Many grocery stores do this calculation for you nowadays on the price tags! :) What you want to do is find the Cost per Ounce of cereal and look for the lowest number. In the first case, you have $3.37 per 15.3 ounces Thus take 3.37 / 15.3 and you get $0.2203 per ounce or 22 cents per ounce In the second case you have $4.59 per 20 ounces Thus take 4.59 / 20 and you get $0.2295 per ounce or almost 23 cents per ounce