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?

Question

Kyler Adams

Business

9 October, 00:28

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?

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Answers (1)

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Sam Johnston · Answer 1

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