Question

Danielle Ltd uses perpetual inventory system. The following is a summary of the purchases and sales of product C during August. Balance on hand 1 August: 10 units @ $10 each. Purchases: Aug 3 10 units @ $12 Aug 12 8 units @ $11 Aug 25 12 units @ $11

Sales: Aug 17 24 units Aug 27 10 units

The value of the stock of product C at 31 August using the moving average method inventory is (rounding to the nearest dollar value):

Select one: a. $124 b. $54 c. $64 d. $66

Answer 1

Perpetual inventory system - moving average method Cost of goods purchased Cost of goods sold Date No of Cost per Goods No of Cost of Units unit Purchased Units unit goods sold 01-Aug 10.00 10.00 100.00 Cost per Inventory Balance No of Cost per Inventory Units unit Balance 10.00 10.00 100.00 03-Aug 10.00 12.00 120.00 20.00 11.00 220.00 12-Aug 8.00 11.00 88.00 28.00 11.00 308.00 17-Aug 24.00 11.00 264.00 4.00 11.00 44.00 25-Aug 12.00 11.00 132.00 16.00 11.00 176.00 27-Aug 10.00 11.00 110.00 6.00 11.00 66.00 31 August is $ 66/ Value of the stock of product C Option d) is answer