Readers.com uses a perpetual inventory system. feb.
$\begin{array}{rlr}
1 & \text { On hand, } 30 \text { units at } \$ 5.00 \text { each } & \$ 150 \
8 & \text { Purchased } 40 \text { units at } \$ 5.35 \text { each } & 214 \
15 & \text { Sold } 50 \text { units } & \
22 & \text { Purchased } 40 \text { units at } \$ 5.20 \text { each } & 208\
28& \text { On hand, 60 units }
\end{array}$ If Readers.com uses the moving average method, how much is ending inventory on February 28?
A) $312
B) $318
C) $300
D) $306

Question

Quizplus · Accepted Answer

The moving average cost is calculated by dividing the total cost of goods available for sale by the total number of units available for sale. In this case, the total cost of goods available for sale is $150 + $214 + $208 = $572. The total number of units available for sale is 30 + 40 + 40 = 110 units. Therefore, the moving average cost is $572 / 110 = $5.20 per unit. The ending inventory is 60 units, so the ending inventory value is 60 units x $5.20 per unit = $312.

ReadersCom Uses a Perpetual Inventory System If Readers