Question

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

Purchases							Sales
April 1	(balance on hand)		220	@	$5.30		April 5		420
4			520	@	5.41		12		320
11			420	@	5.62		27		1,040
18			320	@	5.67		28		150
26			720	@	5.94
30			320	@	6.15

Part 1

Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 2 decimal places, e.g. 2.76.)

Average-cost per unit

$

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Part 2

Answer 1

Calculation of average cost per unit :

Balance as on 1st April	220	$5.30	$1,166
Add : Purchases made on 4th April	520	$5.41	$2,813.2
Less : Sales made on 5th April	420	$5.38	$2,259.6
Add : Purchases made on 11th April	420	$5.62	$2360.4
Less : Sales made on 12th April	320	$5.52	$1,766.4
Add : Purchases made on 18th April	320	$5.67	$1,814.4
Add : Purchases made on 26th April	720	$5.94	$4,276.8
Less : Sales made on 27th April	1040	$5.76	$5,990.4
Less : Sales made on 28th April	150	$5.76	$864
Add : Purchase made on 30th April	320	$6.15	$1,968
Total Units Left ( Balance as at 30th April)	590	$5.92	$3,492.8

Average cost per unit = $5.92