Question

In: Accounting

Splish Company is a multi product firm. Presented below is information concerning one of its products,...

Splish Company is a multi product firm. Presented below is information concerning one of its products, the Hawkeye.

Date

Transaction

Quantity

Price/Cost

1/1 Beginning inventory 1,500 $14
2/4 Purchase 2,500 21
2/20 Sale 3,000 35
4/2 Purchase 3,500 27
11/4 Sale 2,700 39
Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.)
Average-cost per unit $

Solutions

Expert Solution

CALCULATION OF AVERAGE COST PER UNIT
Date Particulars Units (A) Rate Per unit Total Cost
1/1 Beginning inventory 1500 $                     14.00 $21,000
2/4 Purchases 2500 $                     21.00 $52,500
4/2 Purchases 3500 $                     27.00 $94,500
Total Goods Available for Sale 7500 $1,68,000
Average Cost Per Unit = Total Cost / Total Units available for sale
Average Cost Per Unit = $168,000 / 7,500 Units = $                22.4000
Answer = Average Cost Per unit = $ 22.4000

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