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Alinara [238K]
3 years ago
12

Skysong, Inc. reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 250 $5 $ 1,250 12 Purchas

e 500 9 4,500 23 Purchase 375 11 4,125 30 Inventory 125 Calculate Weighted Average Unit Cost
Business
1 answer:
ziro4ka [17]3 years ago
5 0

Answer:

Weighted average unit cost =  $8.78

Explanation:

<em>The weighted average method of inventory determines the average cost per unit of inventory each time a new batch is received. or every new batch received the average cost per unit is re-computed by dividing the total value of stock by the outstanding number of units.</em>

The explanation is completed using calculation below:

Total value of stock = (250× $5)   +  (500×$9) + (375 × 11)  = $9,875

Total units of stock = 250 + 500 + 375 = 1,125  units

Weighted average unit cost = Total value of stock / total units of stock

                                        =  $9875 / 1125 units = $8.78

Weighted average unit cost =  $8.78

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