fill in charts Practice Gradebook ORION Downloadable eTextb

fill in charts

& Practice Gradebook ORION Downloadable eTextbook Assignment CALCULATOR MESSAGE MY INSTRUCT? Brief Exercise 6-4 In its first month of operations, Pharoah Company made three purchases of merchandise in the following sequence: (1) 155 units at $10, (2) 560 units at $11, and (3) 135 units at $12. Calculate the average unit cost. (Round answer to 2 decimal places, e.o. 15.25.) Average unit cost s ts by Compute the cost of the ending inventory under the average-cost method, assuming there are 290 units on hand. (Round answer to o decimal places, e.g. 1,25o.) The cost of the ending inventory Question Attempts: 0 of All Rights Rsserved. A Division of lohn Wiley & Sons In

Solution

NUMBER OF UNITS PURCHASED

PRICE PER UNIT

TOTAL PURCHASE PRICE

155

$10

$1550

560

$11

$6160

135

$12

$1620

850

$9330

TOTAL UNITS BOUGHT = 850

AMOUNT SPENT FOR UNITS = $9330

AVERAGE UNIT COST = AMOUNT SPENT FOR UNITS / TOTAL UNITS BOUGHT

= 9330 / 850 = $10.98

1. AVERAGE UNIT COST = $10.98

2. COST OF ENDING INVENTORY = 290 units * $10.98

= $3184

NUMBER OF UNITS PURCHASED	PRICE PER UNIT	TOTAL PURCHASE PRICE
155	$10	$1550
560	$11	$6160
135	$12	$1620
850		$9330
TOTAL UNITS BOUGHT = 850
AMOUNT SPENT FOR UNITS = $9330
AVERAGE UNIT COST = AMOUNT SPENT FOR UNITS / TOTAL UNITS BOUGHT
= 9330 / 850 = $10.98