Question: Alison Inc., which uses the perpetual method and moving-average costing, shows the following activity for January: Date Description Quantity Unit cost January 1 Beginning inventory
Alison Inc., which uses the perpetual method and moving-average costing, shows the following activity for January:
Date Description Quantity Unit cost
January 1 Beginning inventory 80 $15
January 5 Purchase 150 17
January 8 Sale 110
January 15 Purchase 55 20
January 20 Sale 80
January 25 Purchase 70 22
| A. | $1,386 | |
| B. | $1,397 | |
| C. | $1,440 | |
| D. | $1,480 |
For 20X1, MacFarland Inc.s units on hand on January 1 had a unit cost of $14. MacFarland shows the following data for 20X1:
| Date | Purchases | Sales | Units on hand |
| January 1 |
|
| 40 |
| February 2 | 60 units @ $15 each |
|
|
| March 3 |
| 70 units |
|
| May 12 | 90 units @ $16 each |
|
|
| June 22 |
| 55 units |
|
| Sept. 13 | 75 units @ $18 |
|
|
| November 24 |
| 60 units |
|
If MacFarland uses moving-average costing, what is ending inventory on December 31?
| A. | $1,015 | |
| B. | $1,283 | |
| C. | $1,307 | |
| D. | $1,353 |
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