Question

Bonita Company's inventory records show the following data:

Units Unit Cost
Inventory, January 1 10000 $9.00
Purchases: June 18 9000 9.00
November 8 6000 8.00
A physical inventory on December 31 shows 3500 units on hand. Bonita sells the units for $15 each. The company has an effective tax rate of 20%. Bonita uses the periodic inventory method.
Required:
1. The weighted-average cost per unit is ___________.
O $8.52
O $8.53
O $9.10
O $8.76

Answer 1

$8.76

Step-by-step explanation:

Total cost of inventory = (10,000 * $9) + (9,000 * $9) + (6,000 * $8) = $219,000

Total units of inventory = 10,000 + 9,000 + 6,000 = 25,000

The weighted-average cost per unit = $219,000 / 25,000 = $8.76