How to find cost of goods sold?
The records of Lindbergh Aviation include the following accounts for inventory of aviation fuel at Dec 31 of the current year.
Jan 1 Balance 720 units @ $7.10 $5,112
Mar 6 Purchase 310 units @ $7.20 $2,232
Jun 22 Purchase 8410 units @ $7.60 $63,916
Oct 4 Purchase 520 units @$8.60 $4,472
Dec 31 9,030 units $130,935
The problem asks for weighted average of cost of goods sold which the answer is $68,661. However, I am not sure how they were able to get to this number.
As well as to find the cost of goods sold using FIFO which the answer is $68,144 and Using LIFO which the answer is $69,108
Any information will help!