Biehl Co.recorded the following data pertaining to raw material X during January 2010: The moving-average unit cost of X inventory at January 31, 2010 is
A)$4.70.
B)$4.50.
C)$4.43
D)$4.35

Question

Biehl Co.recorded the following data pertaining to raw material X during January 2010:  The moving-average unit cost of X inventory at January 31, 2010 is
A)$4.70. 
B)$4.50. 
C)$4.43 
D)$4.35

Quizplus · Accepted Answer

To calculate the moving-average unit cost, we need to divide the total cost of the raw material X in January 2010 by the total quantity of X purchased and received in January 2010.

Total cost of X in January 2010 = $16,280 + $17,640 = $33,920
Total quantity of X purchased and received in January 2010 = 3,000 + 3,500 = 6,500 pounds

Moving-average unit cost of X inventory at Jan. 31, 2010 = $33,920 ÷ 6,500 = $5.2169/pound

Therefore, the best choice is B, which is the closest option to $5.2169, and it is reasonable to assume that some rounding was applied to the numbers provided in the question. So, the most accurate answer is $4.50.

Biehl CoRecorded the Following Data Pertaining to Raw Material X During