a company sells 100 units in june. calculate the cost of goods sold using cost averaging. round to the…

a company sells 100 units in june. calculate the cost of goods sold using cost averaging. round to the nearest cent.

a company sells 100 units in june. calculate the cost of goods sold using cost averaging. round to the nearest cent.

Answer

Explanation:

Step1: Calculate total cost

First, find the cost of each batch. For June 4: $40\times1.80 = 72$. For June 11: $70\times1.50=105$. For June 18: $40\times1.80 = 72$. For June 25: $50\times1.70=85$. Then sum them up: $72 + 105+72 + 85=334$.

Step2: Calculate total units

Sum the units received: $40 + 70+40 + 50=200$.

Step3: Calculate average cost per unit

Divide total cost by total units: $\frac{334}{200}=1.67$.

Answer:

$1.67$