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During January, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to...
During January, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit Total On Units Cost Cost Hand Balance on 1/1 1,000 $1 $1,000 1,000 Purchased on 1/7 600 3 1,800 1,600 Sold on 1/20 900 700 Purchased on 1/25 400 5 2,000 1,100 Under the moving-average method, what amount should Metro report as inventory at January 31? $3,300 $3,225 $2,640 $3,900
Solutions
Expert Solution
| Metro should report as inventory at January 31 | $3,225 | ||||
| Moving Average | |||||
| Date | Particulars | Units | Cost | Amount | COGS |
| 1-1 | Op Bal | 1,000.00 | 1.00 | 1,000.00 | |
| 1-7 | Purchases | 600.00 | 3.0000 | 1,800.00 | |
| Total | 1,600.00 | 1.7500 | 2,800.00 | ||
| 1-20 | COGS | 900.00 | 1.7500 | 1,575.00 | 900*1.75 |
| Total | 700.00 | 1.7500 | 1,225.00 | ||
| 1-25 | Purchases | 400.00 | 5.0000 | 2,000.00 | |
| Ending inventory | 1,100.00 | 2.9318 | 3,225.00 |
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