Question

Coronado's Place recorded the following data:

Date Unit Received Sold On Hand Unit Cost
1/1 Inventory    540 $2.80
1/8 Purchased 960  1500 2.30
1/12 Sold  1300 200 

The weighted average unit cost of the inventory at January 31 is:

Answer 1

The weighted average unit cost of the inventory at January 31 is $496

Step-by-step explanation:

Weighted Average unit cost the average cost of units on hand on each day. It is calculated by dividing total inventory value by total available units.

Date Unit Received / Sold On Hand Unit Cost Balance

1/1 Inventory 540 units at $2.80 540 $1,512 $1,512

1/8 Purchased 960 units at $2.3 1500 $2208 $3,720

1/12 Sold 1,300 at ($3,720/1500) 200 $3,224 $496