Question
(a)
Calculate the welghted-average unit cost. (Round answer to 3 decimal places, e.s. 5.125.
Weighted-average unit cost
eTextbook and Media
Calculate the welghted-average unit cost. (Round answer to 3 decimal places, e.s. 5.125.
Weighted-average unit cost
eTextbook and Media
Ask by Willis Bright. in the United States
Mar 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
To calculate the weighted-average unit cost, use the formula:
Ensure to plug in the specific unit costs and quantities provided, then round the result to three decimal places.
Solution
We can calculate the weighted-average unit cost using the formula
Step 1. Identify the Data
To use the formula, we need the following information for each item:
- The unit cost (in dollars)
- The quantity purchased
For example, if you have two items with unit costs
Step 2. Plug in the Data
Substitute the known values into the above equation. For instance, if the problem gave:
-
and units -
and units
then the weighted-average unit cost would be calculated as
(When rounded to three decimal places, it would be
Step 3. Round the Result
After performing the calculations, round your numerical answer to three decimal places.
Note: The provided question did not include the specific numerical values (unit costs and quantities) for eTextbook and Media. Please supply the missing data so that we can perform the exact calculation.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Extra Insights
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
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.
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!
