Question 3

A high-tech company operates globally and deals with multiple products. They use a sophisticated

moving average inventory system due to frequent price fluctuations and international supply chain

complexities.

At the beginning of the year, they had 600 units of Product A at $120 each. Throughout the year, they

had various purchases and sales:

Purchases:

March: Purchased 300 units of Product A at $130 each.

May: Purchased 200 units of Product A at $125 each and 150 units of Product B at $180 each.

August: Purchased 400 units of Product A at $140 each and 100 units of Product B at $190 each.

Sales:

April: Sold 200 units of Product A.

June: Sold 150 units of Product A and 50 units of Product B.

September: Sold 100 units of Product A and 70 units of Product B.

Calculate:

Moving Average Cost: Calculate the moving average cost after each purchase for both Product A and

Product B.

Cost of Goods Sold (COGS): Determine the total COGS for both products by the end of the year.

Ending Inventory Value: Calculate the total value of the ending inventory for both products.