In its first month of operations, Weatherall Company made three purchases of mer

Question

In its first month of operations, Weatherall Company made three purchases of merchandise in the following sequence: (1) 180 units at $7, (2) 480 units at $8, and (3) 110 units at $9. Your answer it Incorrect. Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 15.25.) average unit cost $ Your answer is incorrect. Compute the cost of the ending inventory under the average-cost method, assuming there are 370 units on hand. (Round answer to 0 decimal places, e.g. 1, 250.) the cost of the ending inventory $

Explanation / Answer

Average unit cost:

= (180×$7+480×$8+110×$9)÷(180+480+110)

= $7.91 Per unit

The cost of ending inventory:

= $7.91×370

= $2,927

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