Refer to the Horspool Imports situation in Problem 6-2B. Keep all the data unchanged, except that Horspool uses the moving-weighted-average-cost method.
In Problem 6-2B
Horspool Imports is a furniture distributor. The following information is for one item of inventory, kitchen chairs, for the month of February. The store purchased and sold merchandise on account as follows:
Feb. 1 Opening inventory .......................... 50 chairs at $ 50
3 Purchase ............................................ 60 chairs at $ 55
10 Sale ................................................ 100 chairs at $120
22 Purchase ........................................... 90 chairs at $ 60
24 Sale ................................................ 70 chairs at $140
All sales were made on account. Operating expenses were $14,400, with two-thirds paid in cash and the rest accrued in Accounts Payable.
Required
1. Prepare a perpetual inventory record at moving-weighted-average cost. Round the average unit cost to the nearest cent and all other amounts to the nearest dollar.
2. Prepare a multi-step income statement for Horspool Imports for the month of February.