Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2016.The following purchases and sales were made during September:
-What was the value of cost of goods sold of Algo,using the moving weighted average assumption and a perpetual inventory system?
A) $2640
B) $2700
C) $2720
D) $3180

Question

Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2016.The following purchases and sales were made during September:  
-What was the value of cost of goods sold of Algo,using the moving weighted average assumption and a perpetual inventory system?
A) $2640 
B) $2700 
C) $2720 
D) $3180

Quizplus · Accepted Answer

The moving weighted average assumption assigns the average cost of all units available for sale during the period to each unit sold. The perpetual inventory system keeps track of inventory on a continuous basis, so the cost of goods sold is updated each time a sale is made. In this case, the cost of goods sold is $2640.

Diligent Ltd Had 5 Units of the Commodity Algo on Hand