A company purchased inventory as follows: $$\begin{array} { l }
150 \text { units at } \$ 5 \
350 \text { units at } \$ 6
\end{array}$$ The average unit cost for inventory is
A) $5.00.
B) $5.50.
C) $5.70.
D) $6.00.

Question

A company purchased inventory as follows: $$\begin{array} { l } 
150 \text { units at } \$ 5 \
350 \text { units at } \$ 6
\end{array}$$ The average unit cost for inventory is
A) $5.00.
B) $5.50.
C) $5.70.
D) $6.00.

Quizplus · Accepted Answer

The average unit cost is calculated by dividing the total cost by the total number of units: $(150 \times 5 + 350 \times 6) / (150 + 350) = 5.70$.

A Company Purchased Inventory as Follows 150 units at $5350 units at $6\begin{array} { l } 150 \text { units at } \$ 5 \\350 \text { units at } \$ 6\end{array}150 units at $5350 units at $6​

A Company Purchased Inventory as Follows $\begin{array} { l } 150 \text { units at } \$ 5 \\350 \text { units at } \$ 6\end{array}$