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Teal Company uses a periodic inventory system. For April, when the company sold 650 units, the...

Teal Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 310 $34 $ 10,540 April 15 purchase 420 41 17,220 April 23 purchase 270 44 11,880 1,000 $39,640 Collapse question part (a) Incorrect answer. Your answer is incorrect. Try again. Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted average cost per unit

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Expert Solution

Formula sheet

A B C D E F G H I J K
2
3 Weighted average method
4 Weighted average method assumed that goods available for sale are homogeneous.
5 Average cost is found by dividing cost of goods available for sales with number of units available for sale.
6
7 Units Price Cost
8 Beginning Inventory 310 34 =D8*E8
9 Purchase on April 15 420 41 =D9*E9
10 Purchase on April 23 270 44 =D10*E10
11 Total =SUM(D8:D10) =SUM(F8:F10)
12
13 Hence cost of goods available for sales =F11
14 Number of units available to sale =D11
15
16 Calculation of weighted average cost:
17
18 Weighted average cost per unit =Total cost of goods available for sale / Number of units available for sale
19 =D13/D14 =D13/D14
20
21 Hence weighted average cost per unit =D19
22

ekkarill92 answered 1 year ago
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