Table 6-4
Assume the following data for Burnette Sales for 2019: $$\begin{array} { | c | l | }
\hline \text { Beginning inventory } & 10 \text { units at } \$ 7 \text { each } \
\hline \text { March } 18 \text { purchase } & 15 \text { units at } \$ 9 \text { each } \
\hline \text { Sale } & 20 \text { units at } \$ 15 \text { each } \
\hline \text { June } 10 \text { purchase } & 20 \text { units at } \$ 10 \text { each } \
\hline \text { Sale } & 12 \text { units at } \$ 15 \text { each } \
\hline \text { October } 30 \text { purchase } & 12 \text { units at } \$ 11 \text { each } \
\hline \text { Sale } & 10 \text { units at } \$ 16 \text { each } \
\hline
\end{array}$$ On December 31, a physical count reveals 15 units on hand.
-Refer to Table 6-4. Assume a perpetual system. Under the moving-weighted-average-cost method, the cost of goods sold for the first sale (20 units)would be valued at:

Question

Table 6-4
Assume the following data for Burnette Sales for 2019: $$\begin{array} { | c | l | } 
\hline \text { Beginning inventory } & 10 \text { units at } \$ 7 \text { each } \
\hline \text { March } 18 \text { purchase } & 15 \text { units at } \$ 9 \text { each } \
\hline \text { Sale } & 20 \text { units at } \$ 15 \text { each } \
\hline \text { June } 10 \text { purchase } & 20 \text { units at } \$ 10 \text { each } \
\hline \text { Sale } & 12 \text { units at } \$ 15 \text { each } \
\hline \text { October } 30 \text { purchase } & 12 \text { units at } \$ 11 \text { each } \
\hline \text { Sale } & 10 \text { units at } \$ 16 \text { each } \
\hline
\end{array}$$ On December 31, a physical count reveals 15 units on hand.
-Refer to Table 6-4. Assume a perpetual system. Under the moving-weighted-average-cost method, the cost of goods sold for the first sale (20 units)would be valued at:

Quizplus · Accepted Answer

The moving-weighted-average-cost method recalculates the average cost of inventory after each purchase. Initially, there are 10 units at $7 each, totaling $70. The first purchase adds 15 units at $9 each, totaling $135. The combined total cost is $205 for 25 units, making the average cost per unit $8.20 ($205/25). The cost of goods sold for the first sale of 20 units is 20 units * $8.20 = $164.

Table 6-4 Assume the Following Data for Burnette Sales for 2019

Table 6-4
Assume the Following Data for Burnette Sales for 2019