Answer:
a. Cost of good available for sale = $5,500
b. Moving average unit cost for :
June 1 = $5
June 12 = $3.4
June 15 = $3.4
June 23 = $5.55
June 27 = $3.6
Explanation:
a.
Date Explanation units Unit cost
Total cost Moving average cost
June 1 Inventory 200 $5
$1,000 $5
12 Purchase 400 $6
$2,400 $3.4
15 Sale 440 $8
$3,520 $3.4
23 Purchase 300 $7
$2,100 $5.55
27 Sale 360 $9
$3,240 $3.6
30 Inventory 100
Cost of goods available for sale =
Cost of beginning inventory + Cost of purchases
= $5,500 + ( $1,000 + $2,400 + $2,100)
b. Moving average unit cost for :
June 1 : Cost of goods available / Units of goods available = $5 ($1,000/200)
June 12: Cost of goods available / Units of goods available = $3.4 ($1,000 + $2,400/$1,000)
June 15 : Cost of goods available / Units of goods available = $3.4 ($340/100)
June 23 : Cost of goods available / Units of goods available = $5.55 ($340 + $2,100) / 440
June 27 : Cost of goods available / Units of goods available =$3.6 ($360/100)
