The following information was available from the inventory records of the Easton

Question

The following information was available from the inventory records of the Easton Company for January, 20x3: Units    Unit Cost Total Cost

Balance at January 1, 20x3 2,000 $9.775 $19,550

Purchases:

January 6, 20x3 1,500    $10.300    $15,450

January 26, 20x3 2,700    $10.600 $28,620

Sales:

January 7, 20x3    2,200

January 31, 20x3    3,200

Balance at January 31, 20x3 800

Assuming that Easton maintains perpetual inventory records, what should be the inventory at January 31, 20x3, using the moving average inventory method, rounded to the nearest dollar?

Explanation / Answer

Solution:

Therefore value of inventory at Jan31, 20X3 is $8,324

Computation of ending inventory under moving averge method Date Opening Stock Receiving Issue Closing Stock Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Jan 2000 9.775 $19,550.00 0 0 $0.00 0 0 $0.00 2000 9.775 $19,550.00 6-Jan 2000 9.775 $19,550.00 1500 10.3 $15,450.00 0 0 $0.00 3500 10 $35,000.00 7-Jan 3500 10 $35,000.00 0 0 $0.00 2200 10 $22,000.00 1300 10 $13,000.00 26-Jan 1300 10 $13,000.00 2700 10.6 $28,620.00 0 0 $0.00 4000 10.405 $41,620.00 31-Jan 4000 10.405 $41,620.00 0 0 $0.00 3200 10.405 $33,296.00 800 10.405 $8,324.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.