Date 1/1 2/4 2/20 4/2 11/4 (a) Transaction Beginning inventory Purchase Sale Purchase Sale Your answer is incorrect. Quantity Price/Cost 2,900 3.900 4,400 Weighted average cost per unit 4,900 4,100 $18 26 44 34 48 Calculate the weighted-average cost per unit. (Round answer to 4 decimal places, eg 2.7613)

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.