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?
mean cost=(total cost)/total number units.
= (2000*12+1800*14+2600*15) /(2000+1800+2600)
To find the mean unit cost of merchandise inventory, you need to calculate the total cost of all the units purchased and then divide it by the total number of units purchased.
First, let's calculate the total cost for each month:
- In January, 2,000 units were purchased at a cost of $12 per unit, so the total cost for January = 2,000 units * $12 per unit = $24,000.
- In February, 1,800 units were purchased at a cost of $14 per unit, so the total cost for February = 1,800 units * $14 per unit = $25,200.
- In March, 2,600 units were purchased at a cost of $15 per unit, so the total cost for March = 2,600 units * $15 per unit = $39,000.
Now, let's calculate the total cost for the three-month period by adding up the costs for each month:
Total cost for the three-month period = $24,000 + $25,200 + $39,000 = $88,200.
Next, we need to calculate the total number of units purchased for the three-month period:
Total number of units purchased = 2,000 units + 1,800 units + 2,600 units = 6,400 units.
Finally, we can calculate the mean unit cost by dividing the total cost by the total number of units:
Mean unit cost = Total cost for the three-month period / Total number of units purchased = $88,200 / 6,400 units.
Performing the calculation gives us:
Mean unit cost = $13.78125 per unit (rounded to the nearest cent).
Therefore, the mean unit cost of merchandise inventory for the three-month period is approximately $13.78.