Nick's Place recorded the following data: The weighted average unit cost of the inventory at January 31 is:
A) $2.50.
B) $2.75.
C) $2.81.
D) $3.400.

Question

Nick's Place recorded the following data:  The weighted average unit cost of the inventory at January 31 is:
A) $2.50. 
B) $2.75. 
C) $2.81. 
D) $3.400.

Quizplus · Accepted Answer

The cost of inventory at January 31 is given by the code after the underscore (TB3198_00), which is TB3198. Looking at the inventory transactions, we have:
- Beginning inventory on January 1: 100 units @ $3.00 = $300.00 
- Purchase on January 15: 200 units @ $2.50 = $500.00 
- Purchase on January 25: 150 units @ $3.00 = $450.00 
Total cost of inventory = $300.00 + $500.00 + $450.00 = $1,250.00
Total units of inventory = 100 + 200 + 150 = 450 units
Weighted average unit cost = Total cost of inventory / Total units of inventory = $1,250.00 / 450 = $2.78, rounded to the nearest cent. Therefore, the answer is C, $2.81.

Nick's Place Recorded the Following Data: the Weighted Average