Calculate Weighted-Average Unit Cost for Cullumber Center
What is the process to calculate the weighted-average unit cost for Cullumber Center based on the given data?
Calculation of Weighted-Average Unit Cost
Weighted-Average Method:
To calculate the weighted-average unit cost for Cullumber Center, we need to consider the total cost of purchases and the number of units purchased. The formula for weighted-average unit cost is:
Weighted-Average Unit Cost = Total Cost of Purchases / Total Number of Units
Given data:
Date | Units | Unit Cost |
---|---|---|
July 1 | 13 | $115 |
July 6 | 9 | $115 |
July 11 | 6 | $122 |
July 14 | 6 | $122 |
July 21 | 7 | $132 |
July 27 | 6 | $133 |
Calculation:
Total Cost of Purchases = 13*115 + 9*115 + 6*122 + 6*122 + 7*132 + 6*133 = $3151
Total Number of Units = 13 + 9 + 6 + 6 + 7 + 6 = 47
Weighted-Average Unit Cost = $3151 / 47 = $67.000
Therefore, the weighted-average unit cost for Cullumber Center is $67.000 per unit.