A company has beginning inventory of 2,000 units at a cost of $4 per unit. During the month, it purchases an additional 3,000 units at $5 per unit. If the company uses the weighted average cost method, what is the average cost per unit? A. $4.20 B. $4.60 C. $4.40 D. $5.00

A company has beginning inventory of 2,000 units at a cost of $4 per unit. During the month, it purchases an additional 3,000 units at $5 per unit. If the company uses the weighted average cost method, what is the average cost per unit? A. $4.20 B. $4.60 C. $4.40 D. $5.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...

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A company has beginning inventory of 2,000 units at a cost of $4
per unit. During the month, it purchases an additional 3,000 units
at $5 per unit. If the company uses the weighted average cost
method, what is the average cost per unit?
A. $4.20
B. $4.60
C. $4.40
D. $5.00

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