question archive The inventory records for Radford Co
The inventory records for Radford Co
Subject:AccountingPrice:3.87 Bought7
The inventory records for Radford Co. reflected the following
-Beginning inventory @ May 1
100
units @
$ 4.00
First purchase @ May 7
300
units @
$ 4.40
second purchase @ May 17
500
units @
$ 4.60
Third purchase @ May 23
100
units @
$ 4.80
Sales @ May 31
900
units @
$ 7.80
Determine the weighted average cost per unit for May. A) $4.45
B) $4.50
C) $5.12
D) $6.34
The inventory records for Radford Co. reflected the following
|
-Beginning inventory @ May 1 |
100 |
units @ |
$ 4.00 |
|
First purchase @ May 7 |
300 |
units @ |
$ 4.40 |
|
second purchase @ May 17 |
500 |
units @ |
$ 4.60 |
|
Third purchase @ May 23 |
100 |
units @ |
$ 4.80 |
|
Sales @ May 31 |
900 |
units @ |
$ 7.80 |
|
Determine the weighted average cost per unit for May. A) $4.45 B) $4.50 C) $5.12 D) $6.34 |
|
|
|
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Answer:
B )
Step-by-Step explanation
Date Particulars Units Rate per unit($) Total cost($)
May 1 Beginning inventory 100 4.0 400
May 7 First purchase 300 4.4 1,320
May 17 Second purchase 500 4.6 2,300
May 23 Third purchase 100 4.8 480
Weighted average cost per unit = Total cost / Total number of units
= (400 + 1,320 + 2,300 + 480) / (100 + 300 + 500 + 100)
= 4,500 / 1,000
= $4.5
