Question

 You have the following information for Oriole Company for the month ended October 31, 2022. Oriole uses a periodic method for inventory.

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

 Weighted-average cost per unit $_______ 

Answer 1

	Weighted average cost per unit	=	$         28.522
		FIFO	LIFO	Average - cost
	Ending Inventory	$       2,740	$           2,410	$             2,567
	Cost of goods sold	$       7,100	$           7,430	$             7,273
	Gross Profit	$       5,175	$           4,845	$             5,002
	Gross profit rate	42.2%	39.5%	40.7%
	Workings:
		Cost of goods available for sale			Cost of goods sold - Periodic FIFO			Ending Inventory - Periodic FIFO
	FIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
	Beginning Inventory	55	$                 26	$             1,430	55	$           26	$        1,430	-	$           26	$                -
	Purchases:
	Oct-09	130	$                 28	$             3,640	130	$           28	$        3,640	-	$           28	$                -
	Oct-17	95	$                 29	$             2,755	70	$           29	$        2,030	25	$           29	$             725
	Oct-25	65	$                 31	$             2,015	-	$           31	$               -	65	$           31	$         2,015
		345		$             9,840	255		$        7,100	90		$         2,740
		Cost of goods available for sale			Cost of goods sold - Periodic LIFO			Ending Inventory - Periodic LIFO
	LIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
	Beginning Inventory	55	$                 26	$             1,430	0	$           26	$               -	55	$           26	$         1,430
	Purchases:
	Oct-09	130	$                 28	$             3,640	95	$           28	$        2,660	35	$           28	$             980
	Oct-17	95	$                 29	$             2,755	95	$           29	$        2,755	-	$           29	$                -
	Oct-25	65	$                 31	$             2,015	65	$           31	$        2,015	-	$           31	$                -
		345		$             9,840	255		$        7,430	90		$         2,410
		Cost of goods available for sale			Cost of goods sold - Periodic LIFO			Ending Inventory - Periodic LIFO
	Average - cost	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
	Beginning Inventory	55	$                 26	$             1,430
	Purchases:
	Oct-09	130	$                 28	$             3,640
	Oct-17	95	$                 29	$             2,755
	Oct-25	65	$                 31	$             2,015
		345	$         28.522	$             9,840	255	$   28.522	$        7,273	90	$   28.522	$         2,567
	Sales revenue	=	(95 X $45) + (55 X $50) + (105 X $50)
		=	12275
		FIFO	LIFO	Average - cost
(i)	Sales revenue	$     12,275	$         12,275	$          12,275
Less:	Cost of goods sold	$       7,100	$           7,430	$             7,273
(ii)	Gross profit	$       5,175	$           4,845	$             5,002
(ii) / (i)	Gross profit rate	42.2%	39.5%	40.7%