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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

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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

ekkarill92 answered 1 year ago
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