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 |
$ |
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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