The average cost method assumes that the cost of each unit of inventory is the average cost of all goods available for sale during that accounting period. The average cost per unit is found using the following formula cost of goods available for sale. total units available for sale average cost per unit = The inventory records are below. Date January 1 April 13 May 2 September 7 Purchase November 18 Purchase Beginning Inventory Purchase = $ Purchase Total available for sale Qty 50 $1,340 200 200 250 400 Cost 1,100 1,276 1,268 1,252 1,256 Total Cost $67,000 255,200 253,600 313,000 502,400 $1,391,200 The cost of goods available for sale can be found in the table as $1,391,200. The total number of dining sets available for sale is cost of goods available for sale average cost per unit = total units available for sale 1,391,200 Thus, the average cost per dining set (in $) rounded to the nearest cent is as follows,