### Cullumber Company Inventory Report for JuneCullumber Company uses a periodic inventory system and reports the following for the month of June.| Date | Explanation | Units | Unit Cost | Total Cost ||------------|-------------|-------|-----------|------------|| June 1 | Inventory | 130 | $5 | $650 || June 12 | Purchase | 370 | $6 | $2,220 || June 23 | Purchase | 200 | $7 | $1,400 || June 30 | Inventory | 230 | | |### Calculating Weighted-Average Unit CostTo find the weighted-average unit cost, use the following formula:\[ \text{Weighted-average unit cost} = \frac{\sum (\text{Units} \times \text{Unit Cost})}{\sum \text{Units}} \]Using the given data:1. Calculate the total cost for all units. - Initial Inventory: $130 \times 5 = 650$ - First Purchase: $370 \times 6 = 2220$ - Second Purchase: $200 \times 7 = 1400$2. Add the totals: - Total Units = $130 + 370 + 200 = 700$ - Total Cost = $650 + 2220 + 1400 = 4270$3. Apply the formula: - Weighted-average unit cost = $\frac{4270}{700} = 6.1$\[ \boxed{6.1} \]### Example Calculation:\[ \frac{\sum (\text{Units} \times \text{Unit Cost})}{\sum \text{Units}} = \frac{650 + 2220 + 1400}{130 + 370 + 200} = \frac{4270}{700} = 6.1 \]Please round the final answer to three decimal places as per the given instruction, if necessary.

Under weighted average model, cost of the goods that are available for sale divided by the number of…

Cullumber Company uses a periodic inventory system and reports the following for the month of June. Date June 1 (a1) 12 23 30 Explanation Units Unit Cost Inventory Purchase Purchase Inventory 130 370 200 230 $5 Weighted-average unit cost $ 6 7 Total Cost $650 2,220 1,400 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Cullumber Company uses a periodic inventory system and reports the following for the month of June. Date June 1 (a1) 12 23 30 Explanation Units Unit Cost Inventory Purchase Purchase Inventory 130 370 200 230 $5 Weighted-average unit cost $ 6 7 Total Cost $650 2,220 1,400 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...

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