Exercise 6-16 (Part Level Submission) Moath Company reports the lowing for the m

Question

Exercise 6-16 (Part Level Submission) Moath Company reports the lowing for the month of June Unit Date Explanation Units Cost Total Cost June 1 Inventory 12 Purchase 23 Purchase 30 Inventory 300 $7 600 450 150 $2,100 4,800 4,050 Assume a sale of 660 units occurred on June 15 for a selling price of $10 and a sale of 540 units on June 27 for $11. (a1) Your answer is correct Calculate cost of goods available for sale The cost of goods available for sale 10,9 SHOW SOLUTIONSHOW ANSWER LINK TO TEXT (a2) Calculate Moving-Average unit cost for June 1, 12, 15, 23 & 27. (Round answers to 3 decimal places, e.g. 2.525.) June 1 June 12 June 15 June 23 June 27 LINK TO TEXT

Explanation / Answer

(a1)

Cost of goods available for sale = 2,100 + 4,800 + 4,050 = 10,950

(a2)

Date Particulars Units & Unit cost Inventory cost (a) Inventory units (b) Moving avergae cost (a/b) June 1 Beginning inventory 300*7 = 2,100 2,100 300 7 June 12 Purchase 600*8 = 4,800 6,900 900 7.667 June 15 Sold 660*7.667 = 5,060.22 1,839.78 240 7.667 June 23 Purchase 450*9 = 4,050 5889.78 690 8.536 June 27 Sold 540*8,536 = 4,609.44 1,280.34 150 8.536

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