Questions: Oriole Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 75 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 34 8 272 15 Purchase 26 9 234 24 Purchase 40 10 400 Total 100 906 Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost

Oriole Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 75 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1 Inventory 34 8 272
15 Purchase 26 9 234
24 Purchase 40 10 400
Total 100 906

Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average unit cost

Transcript text: Oriole Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 75 units were sold. \begin{tabular}{|c|c|c|c|c|} \hline Date & Explanation & Units & $\underline{\text { Unit Cost }}$ & Total Cost \\ \hline May 1 & Inventory & 34 & \$8 & \$272 \\ \hline 15 & Purchase & 26 & 9 & 234 \\ \hline 24 & Purchase & 40 & 10 & 400 \\ \hline & Total & 100 & & $\$ 906$ \\ \hline \end{tabular} (a1) Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $\$$

Solution

Solution Steps

To calculate the weighted-average unit cost, we need to find the total cost of all units and divide it by the total number of units. This involves summing up the total costs of all inventory purchases and dividing by the total number of units available.

Step 1: Calculate Total Cost and Total Units

The total cost of all units is given as \$906, and the total number of units is 100.

Step 2: Calculate Weighted-Average Unit Cost

The weighted-average unit cost is calculated by dividing the total cost by the total number of units:

\[ \text{Weighted-Average Unit Cost} = \frac{\text{Total Cost}}{\text{Total Units}} = \frac{906}{100} = 9.06 \]