In its first month of operations, McLanie Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 200 units on hand at the end of the period.

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Answer:

the average unit cost:  $7.917

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

In its first month of operations, McLanie Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 200 units on hand at the end of the period. Calculate average unit cost. (Round answers to 3 decimal places, e.g. 5.125.)

My answer:

Given:

  • 1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9.

<=> Total units = 300 + 400 + 500 = 1200 units

<=> Total cost: 300*$6 + 400*$8 + 500*$9

= $1,800 + $3,200 + $4,500

= $9500

  • As we know that, the average unit cost:

= Total cost / total units

=$9,500 ÷ 1,200 = $7.917

Hope it will find you well.

The average unit cost is  $7.917

Calculation of the average unit cost:

We know that

The average unit cost is

= total cost / total number of units

Here,

Total cost should be

= 300*$6 + 400*$8 + 500*$9

= $1,800 + $3,200 + $4,500

= $9500

And, the total no of units should be

= 300 + 400 + 500

= 1,200

So, the average unit cost is

= $9,500 / 1200 units

= $7.917

This question is incomplete. Please find the missing details below.

Calculate average unit cost. (Round answers to 3 decimal places, e.g. 5.125.)

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