Question

Tamarisk Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available.

Units Unit Cost Total Cost
April 1 inventory 230 $26 $ 5,980
April 15 purchase 360 31 11,160
April 23 purchase 410 34 13,940 1,000 $31,080

Calculate weighted average cost per unit

Answer 1

To calculate the weighted average cost per unit for Tamarisk Company, total the cost of all inventory and divide by the total number of units. The calculation results in a weighted average cost of $31.08 per unit.

Step-by-step explanation:

The question asks to calculate the weighted average cost per unit for the Tamarisk Company using a periodic inventory system. This involves totaling the cost of all units available and dividing by the total number of units. To arrive at the weighted average cost per unit, we use the formula:

Total Cost of Inventory ÷ Total Units Available = Weighted Average Cost per Unit

We are provided with the following information:

April 1 inventory: 230 units at $26 each for a total of $5,980

April 15 purchase: 360 units at $31 each for a total of $11,160

April 23 purchase: 410 units at $34 each for a total of $13,940

The total units available are 230 + 360 + 410 = 1,000 units, and the total cost is $5,980 + $11,160 + $13,940 = $31,080. Hence, the weighted average cost per unit is:

$31,080 ÷ 1,000 units = $31.08 per unit

Answer 2

Answer: The weighted average cost per unit is "$31,08".

Step-by-step explanation:

If the inventory is:

Units Unit Cost Total Cost

April 1 inventory 230 $26 $ 5,980

April 15 purchase 360 $31 $ 11,160

April 23 purchase 410 $34 $13,940

---------------------------------------------------------------

1,000 $31,080

The weighted average cost per unit is given by: $ 31080 (Total cost) / 1000 (Total units) = $31,08