At May 1, 2011, Deitrich Company had beginning inventory consisting of 100 units with a unit cost of $€ 3.50$. During May, the company purchased inventory as follows:.

200 units at $€ 3.50$
300 units at $€ 4.00$

The company sold 500 units during the month for $ € 6 $ per unit. Deitrich uses the average-cost method. The average cost per unit for May is

Question

At May 1, 2011, Deitrich Company had beginning inventory consisting of 100 units with a unit cost of $€ 3.50$. During May, the company purchased inventory as follows:.

200 units at $€ 3.50$
300 units at $€ 4.00$

The company sold 500 units during the month for $ € 6 $ per unit. Deitrich uses the average-cost method. The average cost per unit for May is

Quizplus · Accepted Answer

The average cost per unit is calculated by dividing the total cost of inventory available by the total units available. Total cost = (100 units * €3.50) + (200 units * €3.50) + (300 units * €4.00) = €350 + €700 + €1200 = €2250. Total units = 100 + 200 + 300 = 600. Average cost per unit = €2250 / 600 = €3.75.

At May 1, 2011, Deitrich Company Had Beginning Inventory Consisting €3.50€ 3.50€3.50

At May 1, 2011, Deitrich Company Had Beginning Inventory Consisting $€ 3.50$