Evans Company uses a periodic inventory system.The company bought 150 units of inventory for $8 each and 50 units of inventory for $10 each.Evans' weighted average cost per unit is:

Question

Quizplus · Accepted Answer

To calculate the weighted average cost per unit, we need to add up the total cost of inventory and divide it by the total number of units.

Total cost of inventory = (150 units x $8) + (50 units x $10) = $1,500

Total number of units = 150 + 50 = 200

Weighted average cost per unit = $1,500 ÷ 200 = $8.50

Therefore, the correct answer is A) $8.50.

Evans Company Uses a Periodic Inventory System