Question

The inventory records for Radford Co. reflected the following:

Beginning inventory May 1 900 units $3.40
First purchase May 7 1000 units $3.60
Second purchase May 17 1200 units $3.70
Third purchase May 23 800 units $3.80
Sales May 31 3000 units $5.30

Determine the weighted average cost per unit (rounded) for May.

Answer 1

Answer:

The weighted average cost per unit (rounded) for May is 4.

Explanation:

total cost = 900*$3.40 + 1000*$3.60 + 1200*$3.70 + 800*$3.80

                = 3060 + 3600 + 4440 + 3040

                = $14140

total units = 900 + 1000 + 1200 + 800

                 = 3900

weighted average cost per unit = total cost/total units

                                                      = 14140/3900

                                                       =3.63

Therefore, The weighted average cost per unit (rounded) for May is 4.