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Question 6.19 BPP No opening Inventory,1 feb buys 10 units @300/unit,11 feb buys 12 units @250 /unit,1 April sells 8 @400 /unit,1 Aug buys 6 @200/unit 1 Dec sells 12@400/unit.
Using the lecture method i got 2007.20. Book explains formula price per unit under AVCO = total cost/(opening Inventory +total quantity received). Then the final answer as valuation of closing inv *price per unit under AVCO the answer they get is 2057.12.Are the two ways of working out AVCO meant to give different answers ?It is because the question asked for the periodic weighted average cost, and for this the BPP answer is correct.
However AVCO as needed for the exam is the continuous weighted average cost, which is what is explained in the lecture (and for which your answer would have been correct).
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