Question

Coachlight Inc. has a periodic inventory system. The company purchased 200 units of inventory at $9.00 per unit and 300 units at $10.00 per unit. What is the weighted average unit cost for these purchases of inventory?

Answer 1

Answer:

Weighted average unit cost =  9.6 per unit

Explanation:

Given:

Purchased  = 200 units at $9.00 per unit

Purchased = 300 units at $10.00 per unit

Weighted average unit cost = ?

Computation of weighted average unit cost:

$Weighted\ average\ unit\ cost = \frac{(unit1\times price)+(unit2\times price)}{Total \ unit}$

$Weighted\ average\ unit\ cost = \frac{(200\times 9)+(300\times 10)}{200+300} \\\\Weighted\ average\ unit\ cost = \frac{(1,800)+(3,000)}{500}\\\\Weighted\ average\ unit\ cost = \frac{(4,800)}{500}\\\\Weighted\ average\ unit\ cost = 9.6$

Weighted average unit cost =  9.6 per unit