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Question 10: For Product 27B, your warehouse has 300 units that cost $3,000 and 100 units that cost $1,100. What is the average cost per unit for Product

278?
Which one is the answer?
A. $10.00
B. $10.25
C. $10.75
D. $11.00

User Jyore
by
8.8k points

1 Answer

2 votes

Answer:

$10.25

Explanation:

To calculate the average cost per unit for Product 27B, we need to find the total cost of all units and divide it by the total number of units.

The total cost of the 300 units that cost $3,000 is 300 units * $3,000 = $900,000.

The total cost of the 100 units that cost $1,100 is 100 units * $1,100 = $110,000.

The total cost of all units is $900,000 + $110,000 = $1,010,000.

The total number of units is 300 units + 100 units = 400 units.

Therefore, the average cost per unit for Product 27B is $1,010,000 / 400 units = $2525 / 100 units = $25.25 per unit.

So, the answer is B. $10.25.

User Samuel Luswata
by
8.4k points