Question

Question 2 Crane Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Purchases Date Units Unit Cost Sales Units July 1 5 $140 July 6 3 July 11 6 $160 July 14 5 July 21 7 $180 July 27 5

(a1) Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27. (Round answers to 2 decimal places, e.g. $105.50.) Average cost for each unit July 1 $ July 6 $ July 11 $ July   14 $ July 21 $ July 27 $

Answer 1

(a1)

Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27. (Round answers to 2 decimal places, e.g. $105.50.)

			Average cost for each unit
July	1		$140
July	6		$140
July	11	(2*140+6*160)/8	$155
July	14		$155
July	21	(3*155+7*180)/10	$172.50
July	27		$172.50