Question

Debra King Company was formed on December 1, 2019. The following information is available from King’s...

Debra King Company was formed on December 1, 2019. The following information is available from King’s inventory records for Product BAP.

Units

Unit Cost
January 1, 2020 (beginning inventory) 1,740 $ 8
Purchases:
   January 5, 2020 3,480 9
   January 25, 2020 3,770 10
   February 16, 2020 2,320 11
   March 26, 2020 1,740 12


A physical inventory on March 31, 2020, shows 4,640 units on hand.

Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted average-cost per unit

$
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Answer #1

Weighted average-cost per unit= $9.91

Working

Units Cost per unit value
Beginning Balance 1740 $       8.00 $ 13,920
Purchases
3480 $       9.00 $ 31,320
3770 $    10.00 $ 37,700
2320 $    11.00 $ 25,520
1740 $    12.00 $ 20,880
Cost of goods available for sale 13050 $ 129,340

.

Average Cost of Inventory
Units (A) 13050
Total Cost (B) $ 129,340
Average Cost (C=B/A) $ 9.91
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