Stabler, Inc In Addition, It Has Been Determined That Stabler's Inventory at {Purchased

question 64

Multiple Choice

Stabler, Inc.provided the following inventory transaction summary for January: $\begin{array}{lr}1/1&\text {Purchased 200 units@\$3.00 per unit. }\\1/15&\text { Sold 40 units. }\\1/21&\text {Purchased 300 units@\$5.00 per unit }\\1/31&\text { Purchased 40 urits@\$10.00 per unit}\\\end{array}$
In addition, it has been determined that Stabler's inventory at the beginning of the month was $400.00 (200 units) .What was Stabler's cost per unit at the end of January, using the moving average method?

• A)$3.00
• B)$2.00
• C)$4.00
• D)$6.00

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Definitions:

Accounting Cycle

The series of steps followed by an organization to record and analyze financial transactions, culminating in financial statements.

Post-closing Trial Balance

A financial report created after all adjusting and closing entries are made, showing account balances ready for the next accounting period.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the accounts for the next accounting period.

Correcting Entry

A journal entry made in the accounting records to amend an error or oversight in previously recorded transactions.