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Problem -
Fargo Engines Incorporated sells part number 45G to toy manufacturers around the world. Information about part number 45G is contained in the table below. Fargo uses a weighted-average periodic inventory system.
Number of units
Unit Cost
Total Cost
Beginning inventory
2,000
$8.00
$16,000
Purchase
3,000
$8.20
$24,600
5,000
$8.60
$43,000
Totals
10,000
$83,600
Determine the costat goods sold and ending inventory cost of part 45G if 2,000 units remain unsold in inventory cost at the end of the accounting period.
a. Cost of goods sold is $66,133 and ending inventory is $17,467.
b. Cost of goods sold is $66,267 and ending inventory is $25,733.
c. Cost of goods sold is $65,803 and ending inventory is $26,197.
d. Cost of goods sold is $66,880 and ending inventory is $16,720.
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