Question

Help with part C1, please.

Sage Company was tormed on December 1, 2016. The tollowing intormation is available trom Sage's inventory records tor Product BAR Units Unit Cost anuary 1, 2017 (beginning in Purchases: 684 6.00 anuary 5, 2017 anuary 25, 2017 February 16, 2017 March 26, 2017 1,368 1,482 912 684 7.00 8.00 9.00 10.00 A physical inventory on March 31, 2017, shows 1,824 units on hand. ▼ (a) Your answer is correct. Prepare schedule to compute the ending inventory at March 31. 2017, under FIFO inventory method. SAGE COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2017 Units Unit Cost Total Cost Purchases March 26, 2017 10 6840 Purchases February 16, 2017 912 3208

Answer 1

Calculate weighted average cost per unit

	Unit	Unit Cost	total Cost
Beginning inventory	684	6	4104
Purchase
1	1368	7	9576
2	1482	8	11856
3	912	9	8208
4	684	10	6840
Total	5130		40584

Weighted average cost per unit = 40584/5130 = $7.91 per unit