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Calculate the total cost of goods available for sale.

Accounting

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Answer

\text{}\1,416\text{}$

Step-by-step solution

4 steps

  1. Calculate the total cost of goods available for sale.

    • January 1, 2025: 20 \text{ units} \times \10/unit = $200$
    • January 25, 2025: 40 \text{ units} \times \11/unit = $440$
    • June 25, 2025: 40 \text{ units} \times \12/unit = $480$
    • October 10, 2025: 50 \text{ units} \times \13/unit = $650$

    Total cost of goods available for sale = \200 + $440 + $480 + $650 = $1,770$

  2. Calculate the total units available for sale.

    Total units available for sale = 20+40+40+50=15020 + 40 + 40 + 50 = 150 units.

  3. Calculate the weighted-average cost per unit.

    Weighted-average cost per unit=Total cost of goods available for saleTotal units available for sale\text{Weighted-average cost per unit} = \frac{\text{Total cost of goods available for sale}}{\text{Total units available for sale}}

    Weighted-average cost per unit=$1,770150 units=$11.80/unit\text{Weighted-average cost per unit} = \frac{\$1,770}{150 \text{ units}} = \$11.80/\text{unit}

  4. Calculate the Cost of Goods Sold (COGS) for the 120 items sold.

    COGS=Units sold×Weighted-average cost per unit\text{COGS} = \text{Units sold} \times \text{Weighted-average cost per unit}

    COGS=120 units×$11.80/unit=$1,416\text{COGS} = 120 \text{ units} \times \$11.80/\text{unit} = \$1,416

    The company's cost of goods sold for the 120 items sold is \boxed{\text{}\1,416}$

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