Calculate Weighted-Average Unit Cost for Cullumber Center

What is the process to calculate the weighted-average unit cost for Cullumber Center based on the given data?

Calculation of Weighted-Average Unit Cost

Weighted-Average Method:

To calculate the weighted-average unit cost for Cullumber Center, we need to consider the total cost of purchases and the number of units purchased. The formula for weighted-average unit cost is:

Weighted-Average Unit Cost = Total Cost of Purchases / Total Number of Units

Given data:

Date Units Unit Cost
July 1 13 $115
July 6 9 $115
July 11 6 $122
July 14 6 $122
July 21 7 $132
July 27 6 $133

Calculation:

Total Cost of Purchases = 13*115 + 9*115 + 6*122 + 6*122 + 7*132 + 6*133 = $3151

Total Number of Units = 13 + 9 + 6 + 6 + 7 + 6 = 47

Weighted-Average Unit Cost = $3151 / 47 = $67.000

Therefore, the weighted-average unit cost for Cullumber Center is $67.000 per unit.

← Which method allows a department to assess its cost effectiveness within an organization Conflict between sales and operations understanding objectives misalignment →