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Date Transaction Units In Unit Cost Total Units Sold Selling Price Total Calcula

ID: 2509217 • Letter: D

Question

Date

Transaction

Units In

Unit Cost

Total

Units Sold

Selling Price

Total

Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Presented below is information related to Blowfish radios for the Crane Company for the month of July.

Date

Transaction

Units In

Unit Cost

Total

Units Sold

Selling Price

Total

July 1 Balance 120 $3.80 $  456 6 Purchase 960 3.90 3,744 7 Sale 360 $6.80 $ 2,448 10 Sale 360 7.10 2,556 12 Purchase 480 4.20 2,016 15 Sale 240 7.20 1,728 18 Purchase 360 4.30 1,548 22 Sale 480 7.20 3,456 25 Purchase 600 4.28 2,568 30 Sale 240 7.30 1,752    Totals 2,520 $10,332 1,680 $11,940

Explanation / Answer

Average cost per unit = Cost of units available for sale (beginning inventory+purchases) / Total number of units available for sale (beginning inventory+purchases)

Average cost per unit = 10,332 / 2,520

Average cost per unit = 4.1

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