Question

Elijah currently has six strollers that he purchased for $235 each and four cribs that he purchased for $450 each on the floor of his baby supply store. He also has three strollers and two cribs in his storeroom. Using the weighted average cost method, what is the cost of each item being sold at Elijah's baby supply store?

a. $364.00
b. $342.50
c. $32100
d. $301.15

Answer 1

Answer:

c. $321.00

Explanation:

Particulars      Unit price   Units     Total(Unit price*Unit)

Six strollers $235             6                $1,410

Four cribs $450             4                $1,800

Total                                     10               $3,210

Weighted average price = Total cost/Total unit

Weighted average price= $3210/10

Weighted average price = $321