Question

Flint’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Flint’s purchases and sales of Xpert snowboards during September is shown below. During the same month, 205 Xpert snowboards were sold. Additional data regarding Flint’s sales of Xpert snowboards are provided below. Assume that Flint’s uses a perpetual inventory system.

Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 44 $98 $ 4,312 Sept. 12 Purchases 77 103 7,931 Sept. 19 Purchases 34 107 3,638 Sept. 26 Purchases 85 112 9,520 Totals 240 $25,401 Date Units Unit Price Total Revenue Sept. 5 Sale 20 $199 $3,980 Sept. 16 Sale 85 199 16,915 Sept. 29 Sale 100 209 20,900 Totals 205 $41,795 Calculate moving average cost at Sept 1, 5, 12, 16, 19, 26 & 29.

Answer 1

SOLUTION :

Following details are provide in the question which are presented in the tabular form:

Date	Particulars	Units	Unit Cost	Total Cost
Sep-01	Inventory	44	98	4312
Sep-12	Purchases	77	103	7931
Sep-19	Purchases	34	107	3638
Sep-26	Purchases	85	112	9520
	Total	240		25401

Date	Particulars	Units	Unit Cost	Total Revenue
Sep-05	Sales	20	199	3980
Sep-16	Sales	85	199	16915
Sep-29	Sales	100	209	20900
	Total	205		41795

CALCLULATION OF MOVING AVERAGE COST:

Date	Purchases	Sales	Balance
Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost
Sep-01							44	98	4312
Sep-05				20	98	1960	24	98	2352
Sep-12	77	103	7931				101	101.8119	10283
Sep-16				85	101.8119	8654.01	16	101.8119	1628.99
Sep-19	34	107	3638				50	105.3398	5266.99
Sep-26	85	112	9520				135	109.5333	14786.99
Sep-29				100	109.5333	10953.33	35	109.5333	3833.664

CALCLULATED MOVING AVERAGE COST:

Sep-01	4312
Sep-05	2352
Sep-12	10283
Sep-16	1628.99
Sep-19	5266.99
Sep-26	14786.99
Sep-29	3833.66