I thought I had to use the total of quantity / total cost to get the average cos

Question

I thought I had to use the total of quantity / total cost to get the average cost per unit

Problem 8-6 (Part Level Submission) Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye Date Transaction Quantity Price/Cost 1/1 Beginning inventory 2,420 2/4 Purchase 2/20 Sale 4/2 Purchase 11/4 Sale 3,420 3,920 4,420 3,620 $17 25 42 32 46 (a) Your answer is incorrect. Try again Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit 109.88

Explanation / Answer

Qty Unit Value Beginning stock                     2,420                                17                     41,140 Purchase                     3,420                                25                     85,500 Purchase                     4,420                                32                   141,440 Total Goods available for sale                     10,260                   268,080 Weighted average cost=268080/10260=                        26.13 Arithmatic Agerage of costs = (17+25+32)/3=                        24.67

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