A company purchased inventory as follows: 150 units at $6
350 units at $7
The average unit cost for inventory is

Name: A company purchased inventory as follows: 150 units at $6 350 units at $7 The average unit cost for inventory is
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

The average unit cost is calculated by dividing the total cost of inventory by the total number of units. Total cost = (150 units * $6) + (350 units * $7) = $900 + $2450 = $3350. Total units = 150 + 350 = 500. Average cost = $3350 / 500 units = $6.70.

A Company Purchased Inventory as Follows: 150 Units at $6