Answer:
a.$5,667
Explanation:
According to the weighted average cost method, all units on inventory must be priced equally. If the company had 1,000 units at $1.00 and purchased an additional 5,000 units for $5,800, the total cost per unit is:
[tex]C=\frac{\$1.00*1,000+\$5,800}{5,000+1,000}\\ C=\$1.1333333[/tex]
If 5,000 units were sold, the cost of goods sold is:
[tex]S = \$1.1333333*5,000\\S=\$5,667[/tex]
Palmer Company's cost of goods sold was $5,667.
