The Organizer Store uses the weighted-average inventory costing method in a perpetual inventory system. The unit cost of the beginning inventory for inventory item X500 was $10 per unit and the first purchase of the period has a unit cost of $12 per unit. The weighted average cost per unit is $11. Assume multiple units were purchased.

Question

Quizplus · Accepted Answer

The weighted average cost per unit cannot be determined as $11 without knowing the quantities of the beginning inventory and the quantities purchased at $12 per unit. The weighted average cost is calculated by dividing the total cost of goods available for sale by the total units available for sale, which requires specific quantities to accurately compute.

The Organizer Store Uses the Weighted-Average Inventory Costing Method in a Perpetual