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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