Question

The following inventory transactions took place for Oriole Corporation for the month of May: Date Event May 1 beginning inventory May 5 purchase May 10 purchase May 15 sale May 20 sale May 22 purchase May 24 purchase May 25 sale Quantity 2,000 3,000 5,000 5,000 3,000 3,500 2,500 5,000 Cost/ Selline Price $3.10 3.30 3.40 5.80 5.80 3.60 3.60 5.80 Calculate the ending inventory balance for Oriole Corporation, assuming the company uses a perpetual inventory system and the moving average cost formula. (Round unit costs to 2 decimal places, e . 52.75 and final answer to O decimal places, e-.5.275.) Ending inventory $

Answer 1

Perpetual inventory system and moving-average cost formula:
Date	Purchase			Sale ( at cost )			Balance
	Units	Unit cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
May 1							2000	3.10	6200
May 5	3000	3.30	9900				5000	3.22	16100
May 10	5000	3.40	17000				10000	3.31	33100
May 15				5000	3.31	16550	5000	3.31	16550
May 20				3000	3.31	9930	2000	3.31	6620
May 22	3500	3.60	12600				5500	3.49	19220
May 24	2500	3.60	9000				8000	3.53	28220
May 25				5000	3.53	17650	3000	3.52	10570

Ending inventory

10570