Question

Penny Manufacturing Company provided the following information regarding its inventory transactions for the current year. ​(Click the icon to view the inventory​ transactions.)

Determine the ending inventory and cost of goods sold that Penny should report assuming that the firm uses the​ moving-average cost method​ (perpetual basis). Round per unit cost to two decimal places. ​(Do not round intermediary calculations. Only round the amount you input into the cell for cost per unit to two decimal places and all other amounts to the nearest whole​ dollar.)

Begin by entering Penny purchase and sale transactions in chronological order one line at a​ time, calculating a new​ moving-average cost per unit after every transaction. ​(Use a minus sign or parentheses for units sold or for a reduction in cost. Do not round intermediary calculations. Only round the amount you input into the cell for unit cost and cost per unit to two decimal places and all other amounts to the nearest whole​ dollar.)

Transaction	Units	Sales in Units	Unit Cost		Total Cost
Beginning inventory 1/1	8,500		$11		$93,500
Purchases and Sales
February 8	1,500		17		25,500
June 24	2,400		22		52,800
Subtotal	12,400				$171,800
September 18		7,100
December 24	4,250		28		119,000
Total available for sale	16,650				$290,800
Units sold September 18	(7,100)
Ending inventory	9,550

Moving-average:	Units					Average
	Purchased	Unit	Cumulative	Total	Cumulative	Cost
Transaction	(Sold)	Cost	Units	Cost	Cost	Per Unit
Beginning inventory
Purchase - February 8
Purchase - June 24
Sale - September 18
Purchase - December 24

Answer 1