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22 January, 13:03

Coachlight Inc. has a periodic inventory system. The company purchased 205 units of inventory at $9.50 per unit and 310 units at $10.50 per unit. What is the weighted average unit cost for these purchases of inventory? (Round your final answer to two decimal places.)

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  1. 22 January, 15:45
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    Weighted average cost per unit = $10.10

    Explanation:

    We know,

    Under weighted average unit cost, the cost for purchased inventory = Total inventory costs : total inventory in units

    Given,

    Total inventory in units = 205 + 310 = 515 units

    Total inventory costs = (205 units * $9.50) + (310 units * $10.50)

    = $1,947.50 + $3,255 = $5,202.50

    Therefore,

    Weighted average cost per unit = $5,202.50 : 515 units

    Weighted average cost per unit = $10.10

    Therefore, the company will use this cost per unit to determine cost of goods sold and ending inventory.
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