Multiple Choice
A periodic inventory system measures cost of goods sold (COGS) by:
24
views
4. Merchandising Operations
Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Under both the perpetual and periodic inventory systems, if 8,000 units are produced and sold at a total variable cost of $40,000, what is the variable cost per unit produced and sold?
A
$0.20
B
$5.00
C
$40.00
D
$8.00
Verified step by step guidance1
Step 1: Understand the problem. The goal is to calculate the variable cost per unit produced and sold. The total variable cost and the number of units produced and sold are provided.
Step 2: Recall the formula for variable cost per unit: \( \text{Variable Cost per Unit} = \frac{\text{Total Variable Cost}}{\text{Number of Units Produced and Sold}} \).
Step 3: Identify the values from the problem. The total variable cost is $40,000, and the number of units produced and sold is 8,000.
Step 4: Substitute the values into the formula: \( \text{Variable Cost per Unit} = \frac{40,000}{8,000} \).
Step 5: Perform the division to find the variable cost per unit. This will give you the cost per unit produced and sold.
3:41mWatch next
Master Cost of Goods Sold:Perpetual Inventory with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory practice set
Problem sets built by lead tutorsExpert video explanations