Calculate the weighted-average cost of the following inventory purchases:
A)$12.74
B)$12.75
C)$22.74
D)$22.75
E)$37.49

Question

Calculate the weighted-average cost of the following inventory purchases: 
A)$12.74 
B)$12.75 
C)$22.74 
D)$22.75 
E)$37.49

Quizplus · Accepted Answer

To calculate the weighted average cost, we need to multiply the cost of each purchase by the quantity and add the results, then divide by the total quantity. 
(150 x 10) + (200 x 20) + (250 x 30) = 12,500 
Total quantity = 10 + 20 + 30 = 60 
Weighted average cost = 12,500 / 60 = $208.33 / 10 = $20.833, which is closest to option B, $12.75.

Calculate the Weighted-Average Cost of the Following Inventory Purchases