Answer:
the average cost for inventory is $11.40
Explanation:
The computation of the average units for cost is shown below:
= Total purchase ÷ total purchase units
= (150 units × $10 + 350 units × $12) ÷ (150 units + 350 units)
= ($1,500 + $4,200) ÷ (500 units)
= ($5,700) ÷ (500 units)
= $11.40
Hence, the average cost for inventory is $11.40
We simply applied the above formula and the same is to be considered
