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nikitadnepr [17]
3 years ago
12

Beginning inventory, purchases, and sales for Meta-B1 are as follows: July 1 Inventory 100 units at $400 12 Sale 70 units 23 Pur

chase 120 units at $450 26 Sale 110 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the July 23 purchase. $per unit
Business
1 answer:
GaryK [48]3 years ago
6 0

Answer:

$440 per unit

Explanation:

Units balance after July 12 sales = 100 - 70 = 30

Total units after July 23 = 30 + 120 = 150

Total cost of units balance after July 12 sales = $400 × 30 = $12,000

Total cost of July 23 purchases = 120 × $450 = $54,000

Total cost of inventories after July 23 = $12,000 + $54,000 = $66,000

Weighted average unit cost after the July 23 purchase = $66,000 ÷ 160 = $440 per unit

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