Question

During January, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit Total On Units Cost Cost Hand Balance on 1/1 1,000 $1 $1,000 1,000 Purchased on 1/7 600 3 1,800 1,600 Sold on 1/20 900 700 Purchased on 1/25 400 5 2,000 1,100 Under the moving-average method, what amount should Metro report as inventory at January 31? $3,300 $3,225 $2,640 $3,900

Answer 1

Answer:

Inventory= $3,300

Explanation:

Giving the following information:

1/1: 1,000units at $1  

Purchased on 1/7: 600 units at $3

Sold on 1/20: 900 units

Purchased on 1/25: 400 units at $5

What amount should Metro report as inventory at January 31

Inventory= 1,100 units* [(5+3+1)/3]= $3,300