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Sorry. I just got to know that I had posted my question in the wrong forum and this is the forum where we could ask for help. So I’m posting again.
@johnmoffat
Hello.
I’m currently doing my A levels as a private candidate and I’ve been doing past papers. There’s this AVCO question which I’m stuck on. They’ve asked us to calculate the closing inventory at the end of the month.
Here’s the link to the pdf. Question no 3 a) ii
https://papers.xtremepapers.com/CIE/Cambridge%20International%20A%20and%20AS%20Level/Accounting%20(9706)/9706_s13_qp_23.pdf
Answer is avco= $31.49
Pls help me. I’ve searched the whole internet to understand it. But I just don’t get the right answer. You’re my last hope!!
What I thought was that you had to divide the total units sold by total price and you’ll get the avg cost. But this way I ain’t getting the right answer. Pls help me!You need to calculate the average cost after every sale.
Best is to look at Chapter 9 of our free lectures notes. Example 5 on page 60 is just like the one in your question. There is an answer at the back of the notes, but also there is a free lecture where I go through the example.
The link to download the notes is:
https://opentuition.com/acca/f3/acca-f3-notes/(You will find the link to the lectures on the same page)
@johnmoffat
Just went through the lectures notes and notes both. I tried solving the question the exact way but still wrong answer. It’s a 3 marks question and we’ve very limited time to calculate avco after every. In my book, there are two ways to calculate avco; Perpetual and periodic. and here they want us to calculate using the periodic method. Pls help me. I’m so confused!
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