(a)
Calculate the welghted-average unit cost. (Round answer to 3 decimal places, e.s. 5.125.
Weighted-average unit cost
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To find the weighted-average unit cost, you’ll need to gather the total costs of all units and divide that by the total number of units. For example, if you have 100 units purchased at $5 each and 150 units purchased at $7 each, the calculation would be:

Total Cost = (100 x $5) + (150 x $7) = $500 + $1050 = $1550
Total Units = 100 + 150 = 250

Now, divide the total cost by total units:
Weighted-Average Unit Cost = Total Cost / Total Units = $1550 / 250 = $6.200.

So, the weighted-average unit cost is $6.200 when rounded to three decimal places.

Calculating the weighted-average unit cost is often a game-changer in inventory accounting, especially when dealing with fluctuating prices. It helps businesses assess their inventory value more accurately, leading to better financial decision-making. This method is especially popular among companies that hold a large inventory with varied purchase prices.

When calculating, a common mistake is overlooking the correct totals for cost and units. Remember, it’s easy to mix up the numbers, especially if you’re doing quick math. Take your time to verify your data and ensure you’re not missing any units or costs to avoid faulty calculations that can impact your financial reports significantly!