Question

The following information was available from the inventory records of Coronado Industries for January:

	units	unit cost	total cost
Balance at January 1	9200	$9.78	$89976
Purchases
January 6	6100	10.24	$62464
January 26	7900	10.69	$84451
sales : January 7	(7700 )
January 31	(11000)
Balance at January 31	4500

Assuming that Coronado maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar? (Round average cost per unit to 3 decimal places, e.g. 1.485.)

A. $47000.

B. $46051.

C. $46503.

D. $45948.

Answer 1

	Cost of goods purchase	Cost of goods sold	Ending inventory
	Units	Units cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
Jan 1							9,200	9.78	89,976
Jan 6	6,100	10.24	62,464				15,300	9.963	152,440
Jan 7				7,700	9.963	76,715	7,600	9.964	75,725
Jan 26	7,900	10.69	84,451				15,500	10.334	160,177
Jan 31				11,000	10.334	113,674	4,500	10.334	46,503

Cost of ending inventory = $46,503

Correct option is (c)