Wanda Owns A Book Store And Needed To Compute Her
The weighted average cost method is a commonly used accounting approach that involves dividing the total cost of goods available for sale by the total number of units available for sale. This method allows businesses to determine the average cost of inventory over a specific period, making it easier to calculate and track inventory costs. The weighted average cost method is allowed under both GAAP and IFRS accounting standards and is a useful tool for businesses that need help with inventory management and tracking.
To calculate the weighted average cost, we first need to determine the total cost of goods available for sale and the total number of units available for sale.
Total cost of goods available for sale: (600 books on the floor * $15) + (300 books in the storeroom * $15) + (45 electronic readers on the floor * $250) + (25 electronic readers in the storeroom * $250) = $9,000 + $4,500 + $11,250 + $6,250 = $30,000
Total number of units available for sale: 600 books on the floor + 300 books in the storeroom + 45 electronic readers on the floor + 25 electronic readers in the storeroom = 970 units
So, the weighted average cost per unit is: $30,000 / 970 = $30.93
However, the given options do not include $30.93. Therefore, without the specific weighted average cost provided in the options, I'm unable to provide a direct match from the available options.
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