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, you need to multiply the quantity of each inventory purchase by its cost, sum up all the values and divide it by the total quantity.

(20 x $10.00) + (15 x $12.00) + (35 x $14.00) + (25 x $16.00) = $200 + $180 + $490 + $400 = $1270

Total quantity = 20 + 15 + 35 + 25 = 95

Weighted-average cost = $1270 / 95 = $13.36

Therefore, the best choice is B ($12.75) as it is the closest option to the calculated weighted-average cost.

Calculate the Weighted-Average Cost of the Following Inventory Purchases