Question

A. assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the october 22 purchase. round your answer to two decimal places.

Answer 1

Assuming a perpetual inventory system and using the weighted average method, the weighted average unit is determined as $11.44 after the October 22 purchase.

What is Weighted Average Cost (WAC)?

The Weighted Average Cost (WAC) method of inventory valuation in accounting uses a weighted average to establish the COGS and inventory levels.

The price of the products up for grabs is divided by the quantity of them in the weighted average cost technique.

The WAC technique is appropriate under both GAAP and IFRS accounting. Weighted Average Cost (WAC) Method Formula

Weighted Average Cost

Weighted Average Unit Costs = [360 units×$12 + (320-180) ×$10] / [360+(320-180)]units}

Weighted Average Unit Costs = $5720 / 500 units

Weighted Average Unit Costs = $11.44

Costs of goods that are offered for sale are calculated using beginning inventory value plus acquisitions.

Units available for sale are the number of units that can be sold by a company or the total number of units that are in its inventory.

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