Question

Teal Mountain Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 36 $8 $288 15 Purchase 25 9 225 24 Purchase 39 10 390 Total 100 $903 Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Answer 1

Answer:

9.03 per unit

Explanation:

Given that,

Units sold = 79 units

On may 1,

Inventory = 36 units

Unit cost = $8

Total cost = $288

On may 15,

Purchase = 25 units

Unit cost = $9

Total cost = $225

On may 24,

Purchase = 39 units

Unit cost = $10

Total cost = $390

Total units = 36 + 25 + 39

                  = 100

$Average\ cost\ per\ unit=\frac{288+225+390}{100}$

                                             = 9.03 per unit