Langer Company has the following inventory information. $$\begin{array} { r l l }
\text { July } 1 & \text { Beginning Inventory } & 10 \text { units at } \$ 90 \
5 & \text { Purchases } & 60 \text { units at } \$ 92 \
14 & \text { Sale } & 40 \text { units } \
21 & \text { Purchases } & 30 \text { units at } \$ 95 \
30 & \text { Sale } & 28 \text { units }
\end{array}$$ Assuming that a perpetual inventory system is used, what is the ending inventory (round all calculations to nearest dollar) under the moving-average cost method?

Question

Langer Company has the following inventory information. $$\begin{array} { r l l } 
\text { July } 1 & \text { Beginning Inventory } & 10 \text { units at } \$ 90 \
5 & \text { Purchases } & 60 \text { units at } \$ 92 \
14 & \text { Sale } & 40 \text { units } \
21 & \text { Purchases } & 30 \text { units at } \$ 95 \
30 & \text { Sale } & 28 \text { units }
\end{array}$$ Assuming that a perpetual inventory system is used, what is the ending inventory (round all calculations to nearest dollar) under the moving-average cost method?

Quizplus · Accepted Answer

The moving-average cost method calculates a new average cost after each purchase. After the sales, the ending inventory is 32 units at an average cost of $93.31, totaling $2,986.

Langer Company Has the Following Inventory Information Assuming That a Perpetual Inventory System Is Used, What Is