Question

During January 20X3, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit cost Total cost Units on hand Balance on 1/1/X3 1,000 $1 $1,000 1,000 Purchased on 1/7/X3 600 $3 $1,800 1,600 Sold on 1/20/X3 900 700 Purchased on 1/25/X3 400 $5 $2,000 1,100 Under the moving-average method, what amount should Metro report as inventory at January 31, 20X3?

Answer 1

Answer:

Metro report as inventory 1100 units at 2,4 unit cost, to total cost of 2640

Explanation:

if you put on a datasheet information:

date units unit cost total cost units available  

1/1/x3 1000 1         1000          1000             initial

1/7/x3 600         3         1800          1600             purchase

1/20/x3 700                                                    900                  sale

1/25/x3 400         5         2000           1100             purchase

1/31/x3 2000 2,4         4800           1100              Final

4800 /2000 = unit cost in January = 2,4 x 1100 units=  2640