Question

# Blue Spruce Corporation uses a perpetual inventory system. On November 19, the company sold 610 units....

Blue Spruce Corporation uses a perpetual inventory system. On November 19, the company sold 610 units. The following additional information is available:
 Unit Total Nov. 1 inventory Nov. 15 purchase Units Cost Cost 310 \$12 \$3,720 470 14 6,580 390 17 6,630 1,170 \$16,930

(a)

Calculate the November 30 inventory and the November cost of goods sold, using the moving-average cost formula. (Round unit cost to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places. e.g. 5,275.)
Cost of Goods Sold Ending Inventory \$ enter a dollar amount rounded to 0 decimal places \$ enter a dollar amount rounded to 0 decimal places

cost of goods sold

while using moving average method units are costed at weighted average cost per unit

weighted average cost per unit=total cost/total units

on november 19

total cost=\$3720+\$6580=\$10300

total units=310+470=780

weighted average cost per unit=\$10300/780=\$13.20

cost of goods sold=610*\$13.20=\$8052

ending inventory

on november 30

total cost=(170*\$13.20)+\$6630=\$8874

total units=170+390=560 units

weighted average cost per unit=\$8874/560=\$15.85 per unit

ending inventory value=\$15.85*560=\$8876

note: there is a slight difference in the total cost while calculating normal cost value and weighted average value.it is because of rounding the weighted average cost per unit into 2 decimal point. you will get the exact cost when you take the exact weighted average cost per unit (\$15.84642857)