Alison Inc., which uses the perpetual method and moving-average costing, shows the following activity for January:
Date Description Quantity Unit cost
January 1 Beginning inventory 80 $15
January 5 Purchase 150 17
January 8 Sale 110
January 15 Purchase 55 20
January 20 Sale 80
January 25 Purchase 70 22
Alison Inc.’s unit cost for the January 31 ending inventory is:
Select one:
a. $18
b. $18.50
c. $18.87
d. $19.39
Answer - d. $19.39
Explanation So at the end we can see unit cost for ending inventory is $19.39 as per moving average method
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