I figured out how to compute the FIFO AND LIFO. However, I cannot seem to figure

Question

I figured out how to compute the FIFO AND LIFO. However, I cannot seem to figure out how to calculate the weighted average. I thought it was add the two together and divide by 2, but it will not accept that answer. Please explain step by step how to figure out the weighted average, thank you.

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Ending inventory consisted of 29 units. Baxter sold 286 units at $35 each. All purchases and sales were made with cash.

Required:

Compute the gross margin for Baxter Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 4 decimal places and your final answers to the nearest whole dollar amount.)

Explanation / Answer

weighted average unit cost =(65*14 +250*20)/(65+250)= 18.7619

Cost of goods sold =286*18.76=$5,365.90

gross margin = Revenue -Cost of goods sold =286*35-$5,365.90 = $4644

weighted average unit cost =(65*14 +250*20)/(65+250)= 18.7619

Cost of goods sold =286*18.76=$5,365.90

gross margin = Revenue -Cost of goods sold =286*35-$5,365.90 = $4644

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