Merchandise inventory purchases for a firm for a three month period are: January :2,000 units @ $12 per unit; February 1,800 @ $14 per unit; march 2,600 units @15 per unit. What is the mean unit cost of merchandise inventory?
A.$12.82
B.$13.33
C.$13.78
D.$14.00
I think d am I right?
(2000*12 + 1800*14 + 2600*15)/(2000+1800+2600)
i got 13.78
To calculate the mean unit cost of merchandise inventory, we need to find the total cost of purchasing the inventory for the three-month period and then divide it by the total number of units purchased.
Let's calculate the total cost of purchasing the inventory first:
In January, 2,000 units were purchased at $12 per unit, so the total cost for January is 2,000 units * $12 per unit = $24,000.
In February, 1,800 units were purchased at $14 per unit, so the total cost for February is 1,800 units * $14 per unit = $25,200.
In March, 2,600 units were purchased at $15 per unit, so the total cost for March is 2,600 units * $15 per unit = $39,000.
Now, let's calculate the total number of units purchased:
In January, 2,000 units were purchased.
In February, 1,800 units were purchased.
In March, 2,600 units were purchased.
Therefore, the total number of units purchased is 2,000 + 1,800 + 2,600 = 6,400 units.
To find the mean unit cost, we divide the total cost by the total number of units:
Total cost = $24,000 + $25,200 + $39,000 = $88,200
Total number of units = 6,400 units
Mean unit cost = Total cost / Total number of units = $88,200 / 6,400 units
Now, let's calculate the mean unit cost:
Mean unit cost = $88,200 / 6,400 units
By solving the division, we get Mean unit cost ≈ $13.78
Therefore, the mean unit cost of merchandise inventory is approximately $13.78.
The correct answer is C. $13.78.