Groh 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

Question

Groh 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

Quizplus · Accepted Answer

To calculate the moving-average unit cost, we need to divide the total cost of raw material X by the total units purchased. 
Total cost of raw material X = $880 + $990 + $1120 + $1080 + $1020 = $5090 
Total units purchased = 550 + 610 + 700 + 660 + 620 = 3140 
Moving-average unit cost = $5090/3140 = $1.62 per unit 
Therefore, the moving-average unit cost of X inventory as of January 31, 2010 would be: 
$1.62 x 550 units + $1.62 x 610 units + $1.62 x 700 units + $1.62 x 660 units + $1.62 x 620 units = $891 + $987.20 + $1134 + $1069.20 + $1004.40 = $5086.80 
Rounding to two decimal places, the moving-average unit cost is $5086.80/3140 units = $9.00 per unit. Hence, the correct answer is C.

Groh CoRecorded the Following Data Pertaining to Raw Material X During