A company purchased inventory as follows: $$\begin{array} { | l | l | }
\hline \text { March } 3 & 300 \text { units at } \$ 9.00 \
\hline \text { March } 4 & 200 \text { units at } \$ 10.00 \
\hline
\end{array}$$ On March 5, it sold 400 units for $17 each. The weighted- average unit cost to be used for the cost of goods sold on March 5, in a perpetual inventory system, is

Question

A company purchased inventory as follows: $$\begin{array} { | l | l | } 
\hline \text { March } 3 & 300 \text { units at } \$ 9.00 \
\hline \text { March } 4 & 200 \text { units at } \$ 10.00 \
\hline
\end{array}$$ On March 5, it sold 400 units for $17 each. The weighted- average unit cost to be used for the cost of goods sold on March 5, in a perpetual inventory system, is

Quizplus · Accepted Answer

The weighted-average unit cost is calculated by dividing the total cost of goods available for sale by the total units available for sale. Here, (300 units * $9) + (200 units * $10) = $2700 + $2000 = $4700 total cost for 500 units. So, $4700 / 500 units = $9.40 per unit.

A Company Purchased Inventory as Follows On March 5, It Sold 400 Units for $17 Each