Answer: $13.613
Explanation: 240 units at $13.00
= $3120
380 units at $14.00 = $5320
Total inventory = $8,440
Total unit = 620
Weighted average unit cost for the eventory
= Cost of goods available for sale / units available for sale
= $8,440/620
= $13.613
Answer:
$13.61
Explanation:
The weighted average system of inventory valuation is one in which the unit price of every purchase is a part of the ending inventory irrespective of the number of inventory purchased and sold.
Unlike the FIFO method, the expiration date of these inventory items is not a key consideration under this system.
Number of Units Unit price Total cost
240 $13 $3120
380 $14 $5320
Total 620 $8440
The weighted average unit cost for these purchases of inventory
= $8440/620
= $13.61
