PROBLEM 11-4 (IAA)

MOVING AVERAGE UNITS UNITS COST TOTAL COST

March 1 Beginning 1000 MARCH 1 1,000 270 270,000
6 Purchase 3000 6 3,000 250 750,000
14 Purchase 6000 4,000 255 1,020,000
25 Purchase 4000 13,000 9 (2,000) 255 (510,000)
TOTAL UNITS: 14,000 2,000 255 510,000
LESS: 14 6,000 280 1,680,000
March 9 Sale 2000 8,000 273.75 2,190,000
31 Sale 8000 10000 25 4,000 210 840,000
ENDING INVENTORY 4000 12,000 252.5 3,030,000
31 (8,000) 252.5 2,020,000
FIFO ENDING INVENTORY 4,000 252.5 1,010,000
ENDING INVENTORY
4000 x 210 = 840,000 COST OF GOODS SOLD
510,000 + 2,020,000 = 2,530,000
COST OF GOODS SOLD
10000 x 270 = 2,700,000