The following information was available from the inventory r

The following information was available from the inventory records of Anderson Corp. for January:

                                                     Units                 Unit Cost                        

Balance at March 1                      3,100                    9.75                                

Purchases:
03/05/2016                                  2,000                   10.50                                
03/25/2015                                   2,500                   10.70                               

Sales:
03/08/2016                                   -2,750
03/30/2016                                   -3,500

Balance at March 31                    1,350

Assuming that Anderson maintains perpetual inventory records, what should be the inventory at March 31, using the moving-average inventory method, rounded to the nearest dollar?

Select one:

A. $13,851

B. $13,928

C. $14,016

D. $14,224

Solution

Date Purcahse COGS Inventory on hand Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 1-May 3100 9.75        30,225 5-Mar 2000 10.5      21,000 2000 10.5        21,000 5100        10.04        51,225 8-Mar      (2,750)        10.04      (27,621)        2,350 10.04412        23,604 25-Mar 2500 10.7      26,750        2,350        10.04        23,604        2,500        10.70        26,750        4,850        10.38        50,354 30-Mar      (3,500)        10.38      (36,338)        1,350        10.38        14,016 Total Inventory       14,016 So option C is correct