Dark CoRecorded the Following Data Pertaining to Raw Material X During

question 26

Multiple Choice

Dark Co.recorded the following data pertaining to raw material X during January 2007: $\begin{array}{lllll}&\text { Units }\\\text { Date } && \text { Received } & \text { Cost } & \text { Issued } & \text {On Hand }\\1 / 1 / 07 & \text { Inventory } && \$ 8.00 & & 3,200 \\1 / 11 / 07 & \text { Issue } & && 1,600 & 1,600\\1/22/07&\text { purchase }&4,000&\$9.40&&5,600\end{array}$ The moving-average unit cost of X inventory at January 31, 2007 is

• A)$8.70.
• B)$8.85.
• C)$9.00.
• D)$9.40.

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Definitions:

Merchandisers

Businesses that purchase goods for resale at a profit, dealing primarily in finished goods rather than services or production.

Physical Products

Tangible items that are produced and then sold to consumers or other businesses.

Overhead Rate

A rate used to allocate indirect costs to products or services, typically calculated as a ratio of overhead costs to a base such as direct labor hours or machine hours.

Direct Labour

The labor costs directly associated with the production of goods or services, such as wages for workers on the production line.