Question

You have the following information for Bonita Industries for the month ended October 31, 2022. Bonita uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 65 $22 Oct. 9 Purchase 130 24 Oct. 11 Sale 90 45 Oct. 17 Purchase 90 25 Oct. 22 Sale 65 50 Oct. 25 Purchase 75 27 Oct. 29 Sale 100 50 (a1) Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.)

Answer 1

the weighted average cost per unit is $24.514 per unit

Step-by-step explanation:

The computation of the weighted average cost is shown below:

= Total cost of goods available ÷ number of units

= {(65 × $22) + (130 × $24) + (90 × $25) + (75 × $27)} ÷ (65 + 130 + 90 + 75)

= ($1,430 + $3,120 + $2,250 + $2,025) ÷ ( 360 units)

= $8,825 ÷ 360 units

= $24.514 per unit

Hence, the weighted average cost per unit is $24.514 per unit