Answer:
Rocky Mountain Bikes
Current moving average price is:
$25.43
Total inventory valuation is:
$11,443.50
Explanation:
Colorado warehouse:
Item Qty Price Moving Total Total Value
average price Qty
Inventory 50 $25.13 50 $1,256.50
Purchase 300 $25.54 $25.48 350 $8,918.50
Transfer 100 $25.25 $25.43 450 $11,443.50
Rocky Mountain Bikes' Colorado warehouse uses the moving average price to value the inventory. The moving average price is computed by creating a constantly updated average price. This smoothens the price data.
