Calculate the weighted-average cost of the following inventory purchases:
A) $12.74
B) $12.75
C) $22.74
D) $22.75
E) $37.49

Question

Calculate the weighted-average cost of the following inventory purchases: 
A) $12.74 
B) $12.75 
C) $22.74 
D) $22.75 
E) $37.49

Quizplus · Accepted Answer

To calculate the weighted-average cost, we need to multiply the purchase price by the quantity and then add up the total cost for all purchases. Then, we divide the total cost by the total quantity of items purchased.

(10 units x $10.00) + (20 units x $15.00) + (30 units x $20.00) = $100 + $300 + $600 = $1,000

(10 units + 20 units + 30 units) = 60 units

$1,000 ÷ 60 units = $16.67 per unit

Therefore, the weighted-average cost is $16.67 per unit, which is closest to option B ($12.75).

Calculate the Weighted-Average Cost of the Following Inventory Purchases