Question

Vaughn's Place recorded the following data:

	Units			Unit
Date	Received	Sold	On Hand	Cost
1/1 Inventory			590	$2.50
1/8 Purchased	910		1500	4.00
1/12 Sold		1220	280

The weighted average unit cost of the inventory at January 31 is:

$3.41.

$3.25.

$4.40.

Answer 1

Correct Answer:

Option: $ 3.41

Working:

Moving average cost per unit
	A	B	C=A/B
	Inventory balance	Total cost	Average cost for each units
1-Jan	590	$              1,475	$              2.50
8-Jan	1500	$              5,115	$              3.41
12-Jan	1220	$        4,160.20	$              3.41

End of Answer.

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