Question
11. WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020: Units Price/unit Total
11. WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020:
Units
Price/unit
Total
Opening inventory at 1 July 2020
500
$250
$125,000
Purchases on 1 August 2020
1000
$260
$260,000
Purchases on 15 October 2020
500
$290
$145,000
Purchases on 20 December 2020
900
$300
$270,000
Total
2900
$800,000
During the year, WellSurf Ltd sells 2500 surfboards. The company uses the periodic system to manage inventory.
What is the cost of goods sold amount using weighted average method??
a.
$110 345.
b.
$689 655.
c.
$140 500.
d.
$296 000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
27th edition
978-1337272094, 1337272094, 978-1337514071, 1337514071, 978-1337899451
