Answer:
$17.12
Explanation:
We know,
Under weighted average cost of capital (Periodic Inventory System) = Total Inventory cost / Total Inventory
Given,
Total Inventory = 275 + 450 = 725
Total Inventory Cost =
275 units × $16.50 = $4,537.5
450 units × $17.50 = $7,875
Total cost = $12,412.5
Putting the values into the above formula,
Weighted average unit cost = $12,412.5 ÷ 725 units
Therefore, weighted average unit cost = $17.12
Weighted average inventory method shows us how much direct cost we incur during production.
