Colletti Company recorded the following data: The weighted average unit cost of the inventory at January 31 is:

Question

Colletti Company recorded the following data:  The weighted average unit cost of the inventory at January 31 is:

Quizplus · Accepted Answer

To find the weighted average unit cost, we need to divide the total cost of inventory by the total number of units.

Total cost of inventory = beginning inventory cost + purchases cost
= (100 units x $3 per unit) + (200 units x $3.20 per unit) 
= $300 + $640 = $940

Total number of units = beginning inventory units + purchases units 
= 100 + 200 = 300

Weighted average unit cost = $940 / 300 = $3.13, rounded to the nearest cent

Therefore, the best choice is C, $3.18, as this is the closest answer option to the calculated weighted average unit cost.

Colletti Company Recorded the Following Data: the Weighted Average