ITPEC IP October 2020 Question 66
ITPEC IP October 2020 — Question 66 of 100
The ending inventory value is 1,400 yen. After the April 8 purchase, 200 units cost 2,400 yen, so the moving average is 12 yen. Selling 150 leaves 50 units worth 600 yen. The April 29 purchase adds 50 units worth 800 yen, giving 600 + 800 = 1,400 yen.
Answer (c)
Why not others:
- the sale reduces quantity at the current 12-yen average
- the new average after the final purchase is 14 yen for 100 units
- values 1,280, 1,300, and 1,500 do not preserve the stated moving-average inventory amounts
Key rule: Recalculate average cost after each purchase; a sale removes units at the current average cost.
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