MB-330 Implement Inventory and Asset Management Practice Question
A legal entity uses the Moving average cost method for a raw material item. On March 1, there are 100 units on hand at a cost of $12.00 each. On March 5, 50 units are purchased at $15.00 each. On March 10, 30 units are sold. The inventory manager needs to know the unit cost that will be used to value the 30 units issued on March 10. What cost does the system apply?
⚠ Common exam trap
The trap here is assuming the issue uses the most recent purchase price or a simple average of prices, rather than the quantity-weighted moving average recalculated after each receipt.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
$13.00
Moving average recalculates the item's unit cost after each receipt by dividing total inventory value by total quantity on hand. The purchase of 50 units at $15.00 raises total value to $1,950 across 150 units, so any subsequent issue is valued at $13.00 per unit until another receipt changes the average.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$15.00
Why it's wrong here
This is the most recent purchase price, which is used by standard cost or FIFO layers, not moving average. Moving average blends all on-hand costs into a single unit cost, so the issue is valued at the blended $13.00 rather than the latest receipt price.
- ✗
$13.50
Why it's wrong here
This figure would result from incorrectly averaging only the two purchase prices ($12.00 and $15.00). Moving average weights quantities as well as prices, so the 100 units at $12.00 and 50 units at $15.00 produce $13.00, not a simple average of the two unit prices.
- ✗
$12.00
Why it's wrong here
This is the cost before the March 5 purchase. Moving average recalculates the unit cost after every receipt, so the March 10 issue must use the updated average, not the earlier layer. Using $12.00 would ignore the $15.00 receipt and understate the cost of goods sold.
- ✓
$13.00
Why this is correct
With moving average, the unit cost is recalculated after each receipt. After the March 5 receipt, the total value is (100 × $12.00) + (50 × $15.00) = $1,950 for 150 units, giving $13.00 per unit. The March 10 issue is therefore valued at the current moving average of $13.00.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This MB-330 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-330 exam.