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18 December, 00:52

RZM Store sells jeans. During January 2014, its inventory records for one brand of designer jeans were as follows: The cost of goods sold using the periodic average cost method is:

Quantity Price per pair Total

Beginning Inventory 10 pairs $20 $200

January 6 Purchase 4 pairs $25 $100

January 10 Sale 5 pairs N/A

January 15 Purchase 7 pairs $30 $210

January 20 Sale 10 pairs N/A

January 25 Purchase 4 pairs $30 $120

The cost of goods sold using the periodic average cost method is:

a) $358 b) $378 c) $265 d) $236

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  1. 18 December, 04:34
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    c) $265

    Explanation:

    Quantity Price per pair Total

    Beginning Inventory 10 pairs $20 $200

    January 6 Purchase 4 pairs $25 $100

    Total 14 pairs $300

    January 10 Sale 5 pairs N/A

    9 pairs $192.85

    January 15 Purchase 7 pairs $30 $210

    16 pairs $ 402.85

    January 20 Sale 10 pairs N/A

    6 $ 151

    January 25 Purchase 4 pairs $30 $120

    Total 10 pairs $271

    Average Cost per unit = $ 630 / 25 = $18

    The cost of goods sold using the periodic average cost method is:

    c) $265
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