Exercise 8-11 (Part Level Submission) Stellar Company\'s record of transactions
ID: 2532604 • Letter: E
Question
Exercise 8-11 (Part Level Submission) Stellar Company's record of transactions for the month of April was as follows Purchases Sales April 1 (balance on hand) 702 $5.00 1,755 @ 5.08 936 @ 5.39 1,404 5.59 819@ 5.79 585 @ 5.97 April 3 585 @ $10.00 9 1,63810.00 11702@ 11.00 23 1,404 @ 11.00 27 1,05312.00 4 13 21 29 5,382 6,201 (a1) Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit per unitExplanation / Answer
Solution:
Calculation of Total Units Available and Total Cost of Available Units
Units
@
Total Cost
Purchases
April.1 Beg Bal
702
$5.00
$3,510.00
April.4
1755
$5.08
$8,915.40
April.8
936
$5.39
$5,045.04
April.13
1404
$5.59
$7,848.36
April.21
819
$5.79
$4,742.01
April.29
585
$5.97
$3,492.45
6201
$33,553.26
Average Cost Per Unit
Total Cost of Available Units (A)
$33,553.26
Total Units Available for Sale (B)
6201
Average Cost Per Unit (A/B)
$5.41
Average Cost per unit = $5.41 per unit
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Calculation of Total Units Available and Total Cost of Available Units
Units
@
Total Cost
Purchases
April.1 Beg Bal
702
$5.00
$3,510.00
April.4
1755
$5.08
$8,915.40
April.8
936
$5.39
$5,045.04
April.13
1404
$5.59
$7,848.36
April.21
819
$5.79
$4,742.01
April.29
585
$5.97
$3,492.45
6201
$33,553.26
Average Cost Per Unit
Total Cost of Available Units (A)
$33,553.26
Total Units Available for Sale (B)
6201
Average Cost Per Unit (A/B)
$5.41
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