Ehlo Company is a multiproduct firm. Presented below is information concerning one of its...

Question:

Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye.

Date Transaction Quantity Price/Cost
1/1 Beginning inventory 2,390 $17
2/4 Purchase 3,390 26
2/20 Sale 3,890 43
4/2 Purchase 4,390 33
11/4 Sale 3,590 47

Compute the cost of goods sold, assuming Ehlo uses: Perpetual system, moving-average cost flow.

Inventory:

When a moving average is used to compute the cost of goods sold under perpetual inventory, a new cost per unit has to be calculated after every purchase and sale. That new cost per unit is then multiplied by the units sold to compute the cost of goods sold.

Answer and Explanation:

To answer this question, add up the two totals in the cost of goods column from the table below to get $193,543. The ending inventory column computes...

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Perpetual and Periodic Inventory Systems

from Accounting 101: Financial Accounting

Chapter 6 / Lesson 5
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