During January 2006, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its inventory:
align=”left”>
|
Units |
Unit cost |
Total cost |
Units on hand |
|
|
Balance on 1/1/06 |
1,000 |
$1 |
$1,000 |
1,000 |
|
Purchased on 1/7/06 |
600 |
3 |
1,800 |
1,600 |
|
Sold on 1/20/06 |
900 |
700 |
||
|
Purchased on 1/25/06 |
400 |
5 |
2,000 |
1,100 |
Under the moving-average method, what amount should Metro report as inventory at January 31, 2006?
- $2,640
- $3,225
- $3,300
- $3,900