Question

You have the following info for Skysong Inc. For the month ended Oct 31, 2022. Skysong uses a periodic method for inventory.

Date Description Units Unit cost


10/1 Beginning inventory 54 ＄26


10/9 Purchase 12 $28


10/11 Sale 109 $37


10/17 Purchase 104 $29


10/22 Sale 62 42


10/25 Purchase 66 $31


10/29 Sale 107 42


Q1. Calculate the weighted-average cost (Round answer to のd decimal places e. G. 5. 125)

Answer 1

Answer:$24.57 per unit.

Step-by-step explanation:

To calculate the weighted-average cost for Skysong Inc., we need to follow these steps:

Step 1: Calculate the total cost of the beginning inventory and purchases.

- The beginning inventory cost is 54 units * $26 per unit = $1,404.

- The cost of the purchase on 10/9 is 12 units * $28 per unit = $336.

- The cost of the purchase on 10/17 is 104 units * $29 per unit = $3,016.

- The cost of the purchase on 10/25 is 66 units * $31 per unit = $2,046.

Step 2: Calculate the total number of units available for sale.

- The beginning inventory has 54 units.

- The purchase on 10/9 adds 12 units.

- The purchase on 10/17 adds 104 units.

- The purchase on 10/25 adds 66 units.

- The total units available for sale is 54 + 12 + 104 + 66 = 236 units.

Step 3: Calculate the weighted-average cost per unit.

- Divide the total cost of the beginning inventory and purchases ($1,404 + $336 + $3,016 + $2,046 = $5,802) by the total number of units available for sale (236 units).

- The weighted-average cost per unit is $5,802 / 236 = $24.57 (rounded to two decimal places).

Therefore, the weighted-average cost for Skysong Inc. is $24.57 per unit.