Using the periodic simple average method; the cost per unit is?

Date………….Details……………………
Feb……..1 Purchased 400 units at N1.00 each
,, ……..5 Purchased 200 units at N2.00 each
,,………10 Purchased 200 units at N300 each
,, ………15 Issued 320 units
,,……….20 Issued 200 units at N4,00 each
,,……….25 Issued 120 units

A. N4.25
B. N3.25
C. N2.25
D. N1.25

Correct Answer:

Option C – N2.25