Inventory records for Herb's Chemicals revealed the following:March 1, 2024, inventory: 1,050 gallons @ $7.30 per gallon = $7,665Purchases:Sales:MarchMarch 1014March 1,00026 gallonsMarch 16March 23610 gallons@$7.35810 gallons @$7.40610 gallons @$7.45The Cost of Goods Sold under a perpetual inventory system assuming movingaverage cost is:Note: Round unit cost to three decimal places and final answer to whole dollars.$13,148710 gallons$11,987$12,112O $12,576

Under moving average method, inventory and cost of goods sold is valued at moving average cost.Computation of ending inventory COGS under moving Average Cost - Herb's ChemicalDateBeginning InventoryPurchaseCost of Goods SoldEnding InventoryQtyRateAmountQtyRateAmountQtyRateAmountQtyRateAmount1-Mar1050$7.30$7,6650$0.00$00$0.00$01050$7.30$7,66510-Mar1050$7.30$7,665610$7.35$4,4840$0.00$01660$7.32$12,14914-Mar1660$7.32$12,1490$0.00$0710$7.32$5,196950$7.32$6,95216-Mar950$7.32$6,952810$7.40$5,9940$0.00$01760$7.36$12,94623-Mar1760$7.36$12,946610$7.45$4,5450$0.00$02370$7.38$17,49126-Mar2370$7.38$17,4910$0.00$01000$7.38$7,3801370$7.38$10,111Total1710$12,5761370$10,111Cost of goods sold using moving average cost is = $12,576Hence last option is correct.

Business

Accounting

Inventory records for Herb's Chemicals revealed the following: March 1, 2024, inventory: 1,050 gallons @ $7.30 per gallon = $7,665 Purchases: Sales: March March 10 14 March March 16 March 23 610 gallons @ $7.35 810 gallons @ $7.40 610 gallons @ $7.45 710 gallons 1,000 26 gallons

Inventory records for Herb's Chemicals revealed the following: March 1, 2024, inventory: 1,050 gallons @ $7.30 per gallon = $7,665 Purchases: Sales: March March 10 14 March March 16 March 23 610 gallons @ $7.35 810 gallons @ $7.40 610 gallons @ $7.45 710 gallons 1,000 26 gallons

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vinubhaibhaliya
6
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