Chapter 10, Problem 10.8BE

To determine

The units and value of ending inventory as well as the cost of goods sold as per moving average costing method.

Given information:

Balance of beginning inventory is 8,000 units at the rate of $16 per unit.

Value of beginning units is $128,000

Purchase made in the month of February 8 is 4,000 units at the rate of $21.

Value of purchases in the month of February 8 is $84,000

Purchase made in the month of June 24 is 1,800 units at the rate of $23.

Value of purchases in the month of June 24 is $41,400.

Purchases made in the month of December24 is 3,000units at the rate of $26

Value of purchases in the month of December 24 is $78,000

Total number of unit sold is 5,500 units.

Total number of unit purchase during the year is 8,800 units.