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please help
An organisation’s records for last month show the following in respect of one stores item:
Date Receipts Issues Stock
units units units
1st 200
5th 100 100
7th 400 500
19th 190 310
27th 170 140
Last month’s opening stock was valued at a total of £2,900 and the receipts during
the month were purchased at a cost of £17·50 per unit.
The organisation uses the weighted average method of valuation and calculates a
new weighted average after each stores receipt.
What was the total value of the issues last month?
A £7,360
B £7,534
C £7,590
D £7,774It will be difficult to write up a full answer here.
Best is to watch the lecture on AVCO. It is in the Paper F3 lectures on inventories.
every time they buy any, you increase the units and increase the total cost at $17.50 per unit.
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