Question

Coachlight Inc. has a periodic inventory system. The company purchased 240 units of inventory at $13.00 per unit and 380 units at $14.00 per unit. What is the weighted average unit cost for these purchases of inventory?

Answer 1

$13.61

Step-by-step explanation:

The weighted average system of inventory valuation is one in which the unit price of every purchase is a part of the ending inventory irrespective of the number of inventory purchased and sold.

Unlike the FIFO method, the expiration date of these inventory items is not a key consideration under this system.

Number of Units Unit price Total cost

240 $13 $3120

380 $14 $5320

Total 620 $8440

The weighted average unit cost for these purchases of inventory

= $8440/620

= $13.61

Answer 2

Answer: $13.613

Explanation: 240 units at $13.00

= $3120

380 units at $14.00 = $5320

Total inventory = $8,440

Total unit = 620

Weighted average unit cost for the eventory

= Cost of goods available for sale / units available for sale

= $8,440/620

= $13.613