Question

In: Accounting

Sport Box sells a wide variety of sporting equipment. The following is information on the purchases...

Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130 and had transactions as follows:

Mar 1st beginning inventory 5 units at $30 per unit
Mar 3rd sold 3 units
Mar 6th purchased inventory 30 units at $40 per unit
Mar 17th sold 20 units
Mar 23rd purchased inventory 25 units at $50 per unit
Mar 31st sold 30 units
Required: Use the information above to answer the questions below for First In First Out (FIFO) and Moving Weighted Average (MWA) inventory costing methods.

ROUND ALL ANSWERS TO 2 DECIMAL PLACES




What is the ending inventory on Mar 31st under MWA inventory costing?

Solutions

Expert Solution

Please find the attached sheet,

FIFO- first in first out method of inventory valuation specifies that first come inventory will be sold first and last in inventory in last.

Moving weighted average- Under moving weighted average method,there shall be weighted average of inventory after each purchase as defined in example.

Please comment for any additional explanation,

Thanks,

ekkarill92 answered 2 years ago
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