Portey Company Portey uses a perpetual inventory system and had the following in
ID: 2788839 • Letter: P
Question
Portey Company Portey uses a perpetual inventory system and had the following inventory transactions for the month of June. June 1 On hand, 100 units at $9.00 each $900.00 4 Purchased 120 units at $9.10 each 1,092.00 5 Sold 150 units 10 Purchased 100 units at $9.50 each 950.00 24 Sold 60 units Total cost of goods available for sale 2,942.00 30 On hand, 110 units Refer to the information provided for Portey. If Portey uses the moving average inventory costing method, cost of goods sold for the month of June is: a. $1,935.00. b. $1,930.69. c. $1,901.00. d. $1,917.18.
Explanation / Answer
Beginning Inventory Purchase Cost of goods Sold Ending Inventory Date Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount June1 100 $9 $900 June4 100 $9 $900 120 $9.10 $1,092.00 220 $ 9.05 $ 1,992.00 (Rate=(900+1092)/220) June5 220 $ 9.05 $1,992 150 $9.05 $1,358.18 70 $9.05 $633.82 June10 70 $ 9.05 $ 633.82 100 $9.50 $950.00 170 $ 9.32 $ 1,583.82 (Rate=(633.82+950)/170) June24 170 $ 9.32 $ 1,583.82 60 $9.32 $559.00 110 $ 9.32 $ 1,024.82 TOTAL $1,917.18 COST OF GOODS SOLD FOR THE MONTH OF JUNE= $1,917.18