Question

Concord Company’s record of transactions concerning part X for the month of April was as follows.

Problem 8-04 (Part Level Submission) Concord Company's record of transactions concerning part X for the month of April was as follows. Purchases 1 (balance on hand) April April 240 @ $5.50 540 @ 5.60 440 @ 5.80 340 @ 5.90 740 @ 6.20 340 @ 6.40 Sales 5 440 12 340 27 1,080 28 150 (a1) Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 4 decimal places, e.g. 2.7682.) Average-cost per unit t Click if you would like to Show Work for this question: Open Show Work

Purchases Sales

April 1 balance on hand) 240 @ $5.50    April 5 440

4    540 @ 5.60    12 340
11    440 @ 5.80    27    1,080

18 340 @ 5.90    28    150

26    740 @ 6.20
30    340 @ 6.40

Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only.
(Round answer to 4 decimal places, e.g. 2.7682.)
Average-cost per unit

Answer 1

Ans.	Average Cost Per Unit   =   $5.9341 per unit
	Explanations: In weighted average perpetual method when inventory records are kept in units, the
	average cost per unit will be calculated by the following way.
			Cost of goods available for sale
	Date	Transactions	Units	Rate	Total
	Apr-01	Beginning inventory	240	$5.50	$1,320
	Apr-04	Purchase	540	$5.60	$3,024
	11-Apr	Purchase	440	$5.80	$2,552
	18-Apr	Purchase	340	$5.90	$2,006
	26-Apr	Purchase	740	$6.20	$4,588
	30-Apr	Purchase	340	$6.40	$2,176
	Total		2640		$15,666
	Average cost per unit =   Total cost of goods available for sale / Units available for sale
		$15,666 / 2,640
		$5.9341	per unit