The Ocoee supply yard uses weighted-average costing. Purchases are 120 units at $18.25, 180 units at $19.40, and 150 units at $20.10. What weighted-average unit cost should be used?
Correct Answer
C) $19.33
Weighted-average unit cost divides total cost by total units available.
Why This Is the Correct Answer
Weighted-average unit cost divides total cost by total units available.
Why the Other Options Are Wrong
Option A: $19.25
$19.25 is below the supported result for weighted-average inventory; it likely uses the wrong base, period, or account bucket.
Option B: $18.31
$18.31 is below the supported result for weighted-average inventory; it likely uses the wrong base, period, or account bucket.
Option D: $20.10
$20.10 is above the supported result for weighted-average inventory; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Unit and cost live in different drawers; Estimator Checks tells which opens.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Inventory Costing, Weighted Average; use the job ledger figures in the stem and recompute the same accounting measure.
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