**Inventory Management Example: Weighted-Average Perpetual System**Marquis Company utilizes a weighted-average perpetual inventory system and has documented the following purchase and sales activities:| Date | Activities | Units Acquired at Cost | Units Sold at Retail ||------------|------------|------------------------|----------------------|| **August 2** | Purchase | 10 units @ $32 = $320 | || **August 18** | Purchase | 15 units @ $34 = $510 | || **August 29** | Sales | | 12 units sold |**Question:** What is the cost of goods sold for this sale? *(Round average cost per unit to 2 decimal places.)***Multiple Choice Options:**- $510.00- $398.40- $830.00- $150.50- $388.00**Explanation:**To determine the cost of goods sold (COGS) using the weighted-average method, calculate the average cost per unit based on the total cost and total units available for sale. Then multiply the average cost per unit by the number of units sold.1. Total units available = 10 + 15 = 25 units.2. Total cost = $320 + $510 = $830.3. Average cost per unit = Total cost / Total units available = $830 / 25 = $33.20 (rounded to two decimal places).4. COGS for 12 units = 12 * $33.20 = $398.40.Therefore, the correct answer is **$398.40**.

The weighted average perpetual inventory system employs a running average of expenses to track…

Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: Date Activities Purchase August 2 August 18 Purchase August 29 Sales 12 units sold What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.) Units Acquired at Cost 10 units@ $32 $320 15 units@ $34 $510 Units Sold at Retail

Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: Date Activities Purchase August 2 August 18 Purchase August 29 Sales 12 units sold What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.) Units Acquired at Cost 10 units@ $32 $320 15 units@ $34 $510 Units Sold at Retail

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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