-Refer to the figure.What is Department A's cost per unit for materials using the weighted average method?

Question

Quizplus · Accepted Answer

Using the weighted average cost flow assumption, we take the total cost of materials (beginning inventory + purchases) and divide by the total quantity of materials (beginning inventory + purchases). 
Total cost of materials: $38,880 (given in the figure) 
Total quantity of materials: 13,500 units (10,000 beginning inventory + 3,500 purchases) 
Cost per unit of materials = Total cost of materials / Total quantity of materials 
Cost per unit of materials = $38,880 / 13,500 units = $2.88/unit

-Refer to the Figure