Use the Following Information for the Following Questions:
the Following

question 85

Multiple Choice

Use the following information for the following questions:
The following information was available from the inventory records of Key Company for January:
$$\begin{array} { c l l l } & \text { Units } & \text { Unit Cost } & \text { Total Cost } \\\text { Balance at January } 1 & 3,000 & \mathbf { \$ 9 . 7 7 } & \mathbf { \$ 2 9 , 3 1 0 } \\\text { Purchase: } & & & \\\text { January } 6 & 2,000 & 10.30 & \mathbf { 2 0 , 6 0 0 } \\\text { January } 26 & 2,700 & 10.71 & \mathbf { 2 8 , 9 1 7 } \\\text { sales: } & & & \\\text { January } 7 & ( 2,500 ) & & \\\quad \text { January } 31 &\underline{( 4,200 ) } & &\\\text { Balance at January } &\underline{1,000}&& \end{array}$$
-Assuming that Key uses the perpetual inventory system, what should the inventory be at January 31, using the moving-average inventory method, rounded to the nearest dollar?

• A) $10,237
• B) $10,260
• C) $10,360
• D) $10,505

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Definitions:

Claim

A formal request or demand for payment or another benefit, based on the terms of an insurance policy or contract.

Trust Fund

A legal entity created to hold assets for the benefit of specific individuals or organizations, managed by a trustee.

Hold-Back

The retention of a part of the contract price by the owner as required under construction lien legislation to ensure payment of subcontractors and suppliers of materials.

Suppliers Of Goods And Services

Entities or individuals that provide the market with products or perform tasks as a business.