Purchases Sales 40 units at $60/unit 25 units at $65/unit 50 units at $55/unit 30 units at $60/unit 60 units at $45/unit 40 units at $50/unit
Average cost per unit purchased:
40 units at $60/per unit = $2,40050 units at $55/per unit = $2,75060 units at $45/per unit = $2,700
Total = 150 units = $7,850
Average cost per unit = $7,850 /150 units = $52.33/unit
Purchased 40 + 50 + 60 = 150 units. Sold 25 + 30 + 40 = 95
Ending inventory = 150 − 95 = 55 units × $52.33/unit = $2,878
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