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During January 2020, ABC Company which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: UNITS UNIT COST TOTAL COST BALANCE Balance on 01/01/20 1,000 P40 P40, 000 1,000 Purchased on 01/04/20 |600 P120 P72, 000 1,600 Sold on 01/20/20 900 700 Purchased on 01/25/20 400 P200 P80, 000 1,100 Under the moving average method, what amount should be reported as inventory at January 31, 2020?

During January 2020, ABC Company which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: UNITS UNIT COST TOTAL COST BALANCE Balance on 01/01/20 1,000 P40 P40, 000 1,000 Purchased on 01/04/20 |600 P120 P72, 000 1,600 Sold on 01/20/20 900 700 Purchased on 01/25/20 400 P200 P80, 000 1,100 Under the moving average method, what amount should be reported as inventory at January 31, 2020?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the correct answer? A. P129,000 B. P135,000 C. P112,000 D. P127,600
During January 2020, ABC Company which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: UNITS UNIT COST TOTAL COST BALANCE Balance on 01/01/20 1.000 P40 P40, 000 1,000 Purchased on 01/04/20 600 P120 P72.000 1,600 Sold on 01/20/20 900 700 Purchased on 01/25/20 400 P200 P80, 000 1.100 Under the moving average method, what amount should be reported as inventory at January 31, 2020?
Transcribed Image Text:During January 2020, ABC Company which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: UNITS UNIT COST TOTAL COST BALANCE Balance on 01/01/20 1.000 P40 P40, 000 1,000 Purchased on 01/04/20 600 P120 P72.000 1,600 Sold on 01/20/20 900 700 Purchased on 01/25/20 400 P200 P80, 000 1.100 Under the moving average method, what amount should be reported as inventory at January 31, 2020?
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