Robey CompanyThe following data are available for one of the products sold by Robey Company, which uses a perpetual inventory system.
February
1
    On hand, 10 units at $2 each 8
    Sold, 6 units for $10 each 14
    Purchased, 30 units at $3 each 25
    Sold, 24 units for $10 eachRefer to the information provided for Robey Company.  If the Moving Average Cost method is used, determine the following amounts:
A)       Cost of Goods sold for the month of February
B)       Ending inventory on February 28th

What will be an ideal response?


A)(6 × $2) + [((4 × $2) + (30 × $3) / 34) × 24] = $81.12  B)(10 × ($98 / 34)) = $28.80**possible difference due to rounding

Business

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