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A company has a beginning inventory of $60,000 and purchases during the year of 590.000. The beginning inventory consisted of

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Answer #1

Average cost per unit = Total cost/Total units

= (60,000+90,000)/(1000+9000) = 150,000/10,000

= 15 per unit

Cost of Goods Sold = Total units available - Ending inventory

= 10,000 - 5,000 = 5000 units

Cost of Goods Sold = 5000 * 15

= 75,000

Option A

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