Cheyenne Inc. is a retailer operating in British Columbia. Cheyenne uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Cheyenne Inc. for the month of January 2020.
|
Date |
Description |
Quantity |
Unit Cost or Selling Price |
||||||
| January | 1 | Beginning inventory | 125 | $12 | |||||
| January | 5 | Purchase | 175 | 15 | |||||
| January | 8 | Sale | 138 | 25 | |||||
| January | 10 | Sale return | 13 | 25 | |||||
| January | 15 | Purchase | 69 | 17 | |||||
| January | 16 | Purchase return | 6 | 17 | |||||
| January | 20 | Sale | 113 | 29 | |||||
| January | 25 | Purchase | 25 | 19 | |||||
Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round answers to 3 decimal places, e.g. 5.252.)
|
Moving-Average Cost per unit |
||
| January 1 |
$ |
|
| January 5 |
$ |
|
| January 8 |
$ |
|
| January 10 |
$ |
|
| January 15 |
$ |
|
| January 16 |
$ |
|
| January 20 |
$ |
|
| January 25 |
$ |
The Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25 is as follows:
| January 1 | $12 | |
|---|---|---|
| January 5 | ( 125 * $12 + 175 * $15) = ($1500 + $2,625) / 300 = $13.75 | $13.75 |
| January 8 | $13.75 | |
| January 10 | $13.75 | |
| January 15 | (125*$12 + 175*$15 + 69* $17) = ($1500 + $2,625 + $1,173) / 369 = $14.36 | $14.36 |
| January 16 | $14.36 | |
| January 20 | $14.36 | |
| January 25 | (125 * $12 +175 * $15 + 69 * $17 + 25 * $19) = ($1500 + $2,625 + $1,173 + $475) / 394 = $14.65 | $14.65 |
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