Lewis, Inc had the following balances and transactions duri

Lewis, Inc

had the following balances and transactions during 2016:

Beginning Merchandise Inventory 150 units at $80
March 10 Sold 50 units
June 10 Purchased 300 units at $82
October 30 Sold 130 units

What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2016 if the perpetual inventory system and the weighted-average inventory costing method are used? (Round the unit costs to two decimal places and total costs to the nearest dollar.)
A) $22,005
B) $32,600
C) $14,595
D) $10,595

ANSWER

C .| Purchases | Cost of Goods Sold | Inventory on Hand
Date
Quant Unit
Cost Total
Cost
Quant Unit
Cost Total
Cost
Quant Unit
Cost Total
Cost
Jan. 1 150 $80 $12,000
Mar. 1 50 $80 $4,000 100 $80 $8,000
Jun. 10 300 $82 $24,600 400 $81.50 $32,600
Oct. 30 130 $81.50 $10,595 270 $81.50 $22,005
Totals 450 $36,600 180 $14,595 270 $22,005

Cost of Goods Sold = $4,000 + $10,595 = $14,595