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Calculation of Average Cost Per Unit

Dyna Distribution markets CDs of the performing artist King James. At the beginning of March, Dyna had in beginning inventory 1,500 King James CDs with a unit cost of $7 During March, Dyna made the following purchases of King James CDs.

March 5 3,500 @ $8 March 21 2,000 @ $10
March 13 4,000 @ $9 March 26 2,000 @ $11

During March, 10,000 units were sold. Dyna uses a periodic inventory system. Calculate the average cost per unit.

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For your review, I have attached a formatted MS Excel spreadsheet which ...

Solution Summary

The attached MS Excel spreadsheet contains a detailed example on the calculation of average cost per unit for the Dyna Distribution exercise.

$2.19