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In its first month of operations, Skysong, Inc. made three purchases of merchandise in the following sequence: (1) 650 units at $6, (2) 750 units at $8, and (3) 850 units at $9. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)Average unit cost $enter an average unit cost in dollars Compute the cost of the ending inventory under the average-cost method, assuming there are 550 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.)The cost of the ending inventory $enter the cost of the ending inventory in dollars

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Asked Nov 21, 2019

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In its first month of operations, Skysong, Inc. made three purchases of merchandise in the following sequence: (1) 650 units at $6, (2) 750 units at $8, and (3) 850 units at $9.

Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Average unit cost

$enter an average unit cost in dollars

Compute the cost of the ending inventory under the average-cost method, assuming there are 550 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.)

The cost of the ending inventory

$enter the cost of the ending inventory in dollars

Expert Answer

Step 1

Determine average co...

Units purchased Unit Cost Total cost
$6
$3,900
$6,000
$8
$7,650
$9
$17,550
650
750
850
2,250
Average cost per unit = $17,550/2,250 units $7.800
CO — Image Transcription
Units purchased Unit Cost Total cost $6 $3,900 $6,000 $8 $7,650 $9 $17,550 650 750 850 2,250 Average cost per unit = $17,550/2,250 units $7.800 CO

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