Question

Coronado Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases.

Date		Number of Units		Unit Price
May 7		50		$17
July 28		30		22

On June 1, Coronado sold 20 units, and on August 27, 40 more units.

Prepare the perpetual inventory schedule for the above transactions using moving-average cost. (Round average-cost per unit to 2 decimal places, e.g. 12.50 and final answers to 0 decimal places, e.g. 1,250.)

Product E2-D2
Date		Purchases		Cost of Goods Sold		Balance
May 7		$		$		$
June 1		$		$		$
July 28		$		$		$
Aug. 27		$		$		$

Answer 1

PERPETUAL INVENTORY SCHEDULE USING MOVING-AVERAGE COST

Date	Purchases	Cost of goods sold	Balance
May 7	$850	-	$850
June 1	-	$340	$510
July 28	$660	-	$1,170
Aug 27	-	$780	$390

Computation:

Date	Purchases	Cost of goods sold	Balance
May 7	50 units * $17 = $850	-	$850
June 1	-	20 units * $17 = $340	$850 - $340 = $510
July 28	30 units * $22 = $660	-	$510 + $660 = $1,170
Aug 27	-	40 units * ($1,170 / 60 units) = 40 units * $19.50 = $780	$1,170 - $780 = $390

All the best...