Klump Co. Klump Co.uses a perpetual inventory system and had the following inventory transactions for the month of June.

-Refer to the information provided for Klump Co.If the company uses the (moving)Average Cost inventory costing method,cost of goods sold for the month of June is:

Question

Klump Co. Klump Co.uses a perpetual inventory system and had the following inventory transactions for the month of June.

-Refer to the information provided for Klump Co.If the company uses the (moving)Average Cost inventory costing method,cost of goods sold for the month of June is:

Quizplus · Accepted Answer

To calculate cost of goods sold using the moving average cost method, we need to divide the total cost of goods available for sale by the total number of units available for sale.

Total cost of goods available for sale = ($160 x 40) + ($170 x 60) + ($180 x 70) = $6,400 + $10,200 + $12,600 = $29,200

Total number of units available for sale = 40 + 60 + 70 = 170 units

Moving average cost per unit = $29,200 / 170 units = $172 per unit

So, cost of goods sold = 120 units x $172 per unit = $20,640

Therefore, the correct answer is B) $2,541.89.

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