Questions: Wanda owns a book store and needed to compute her inventory. She had 600 books on the floor and another 300 in the storeroom. She also had 45 electronic readers on the floor and 25 in the storeroom. Each book costs 15 and each electronic reader costs 250. Using the weighted average cost method, the cost of each item being sold is -. a.) 31.96 b.) 192.86 c.) 132.50 d.) 19.44

Wanda owns a book store and needed to compute her inventory. She had 600 books on the floor and another 300 in the storeroom. She also had 45 electronic readers on the floor and 25 in the storeroom. Each book costs 15 and each electronic reader costs 250.

Using the weighted average cost method, the cost of each item being sold is -.
a.) 31.96
b.) 192.86
c.) 132.50

d.) 19.44

Transcript text: Wanda owns a book store and needed to compute her inventory. She had 600 books on the floor and another 300 in the storeroom. She also had 45 electronic readers on the floor and 25 in the storeroom. Each book costs $\$ 15$ and each electronic reader costs $\$ 250$. Using the weighted average cost method, the cost of each item being sold is $\qquad$ -. a.) $\$ 31.96$ b.) $\$ 192.86$ c.) $\$ 132.50$ d.) $\$ 19.44$

Solution

Solution Steps

Step 1: Calculate Total Number of Books and Readers

The total number of books is given by: \[ \text{Total Books} = 600 + 300 = 900 \] The total number of electronic readers is: \[ \text{Total Readers} = 45 + 25 = 70 \]

Step 2: Calculate Total Cost of Books and Readers

The total cost of the books is calculated as: \[ \text{Total Cost of Books} = 900 \times 15 = 13500 \] The total cost of the electronic readers is: \[ \text{Total Cost of Readers} = 70 \times 250 = 17500 \]

Step 3: Calculate Total Number of Items

The total number of items is: \[ \text{Total Items} = 900 + 70 = 970 \]

Step 4: Calculate Weighted Average Cost

The weighted average cost is calculated by dividing the total cost by the total number of items: \[ \text{Weighted Average Cost} = \frac{13500 + 17500}{970} = \frac{31000}{970} \approx 31.9588 \]