Express Distribution markets CDs of the performing artist Fishe. At the beginnin

Question

Express Distribution markets CDs of the performing artist Fishe. At the beginning of October, Express had in beginning inventory 4,200 of Fishe’s CDs with a unit cost of $7. During October, Express made the following purchases of Fishe’s CDs. Oct. 3 5,250 @ $8 Oct. 19 6,300 @ $10 Oct. 9 7,350 @ $9 Oct. 25 8,400 @ $11 During October, 22,890 units were sold. Express uses a periodic inventory system.

Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Weighted average cost per unit $?

Explanation / Answer

Weighted Avg cost pu = Total cost of goods available for sale/Total goods available for sale

Total cost of goods available for sale = (4200 * 7) + (5250 * 8) + (6300 * 10) + (7350 * 9) + (8400 * 11)

                                        = 292950

Total goods available for sale = 4200 + 5250 + 6300 + 7350 + 8400 = 31500

Weighted cost pu= 292950/31500 = 9.3

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