Question

Tamarisk Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available.

Units Unit Cost Total Cost
April 1 inventory 230 $26 $ 5,980
April 15 purchase 360 31 11,160
April 23 purchase 410 34 13,940 1,000 $31,080

Calculate weighted average cost per unit

Answer 1

Answer: The weighted average cost per unit is "$31,08".

Explanation:

If the inventory is:

                        Units Unit Cost Total Cost

April 1 inventory 230     $26      $ 5,980

April 15 purchase 360    $31       $ 11,160

April 23 purchase 410     $34      $13,940

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                              1,000                 $31,080

The weighted average cost per unit is given by: $ 31080 (Total cost) / 1000 (Total units) = $31,08