Warner Company purchased thirty units of a product for $20 each and later purchased fifteen more for $19.00 each. If the company uses the weighted average cost flow method, and it sold one unit of the product for $40, its gross margin would be $20.33.
Answer the following statement true (T) or false (F)
True
Average cost per unit = Cost of goods available for sale of [(30 × $20) + (15 × $19.00)] ÷ Units available for sale of 45 = $19.67 per unit
Selling price of $40 ? Cost of goods sold of $19.67 = $20.33
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