Answer:
Step-by-step explanation:
a. The weighted average unit cost after the October 22 purchase can be calculated as follows:
Total cost of inventory available for sale = (320 units x $10 per unit) + (360 units x $12 per unit) = $3,840
Total units available for sale = 320 units + 360 units = 680 units
Weighted average unit cost = Total cost of inventory available for sale / Total units available for sale = $3,840 / 680 units = $5.65 per unit
Therefore, the answer is $5.65 per unit.
b. To determine the cost of goods sold on October 29, we need to calculate the cost of the units sold. The weighted average unit cost at the time of sale can be calculated as follows:
Total cost of inventory available for sale = (320 units x $10 per unit) + (360 units x $12 per unit) = $3,840
Total units available for sale = 320 units + 360 units = 680 units
Weighted average unit cost = Total cost of inventory available for sale / Total units available for sale = $3,840 / 680 units = $5.65 per unit
The cost of goods sold for the 300 units sold on October 29 can be calculated as follows:
Cost of goods sold = 300 units x $5.65 per unit = $1,695
Therefore, the answer is $1,695.
c. To determine the inventory on October 31, we need to calculate the total cost of the inventory that remains. The weighted average unit cost at the time of calculation can be calculated as follows:
Total cost of inventory available for sale = (320 units x $10 per unit) + (360 units x $12 per unit) = $3,840
Total units available for sale = 320 units + 360 units = 680 units
Weighted average unit cost = Total cost of inventory available for sale / Total units available for sale = $3,840 / 680 units = $5.65 per unit
The inventory on October 31 can be calculated as follows:
Inventory = (320 units + 360 units) - 180 units - 300 units = 200 units
Inventory value = 200 units x $5.65 per unit = $1,130
Therefore, the answer is $1,130.