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Hi, could someone please help on this question
Opening inventory is 50 and the following transactions took place in one month
Bought 100 @ $45
Sold 80
Bought 50 @ $50
Sold 60What is the value of inventory at the end of the month
The answer is $2950.
Thanks
you don’t have opening inventory, how to calculate closing inventory. what method using? FIFO or AVC?
They are using FIFO method. The opening inventory is 50 units, I think it may of been at $40.
open 50 @$40
bought 100 @$45Sold 80 : 50 @$40
30 @$45remain : 70 @$45
bought 50 @$50sold 60 @ $45
remain 10 @$45 and 50 @$50 ==> total closing inventory = $2950 as the ans
Thank you, I was multiplying the whole 60 by $45. On another question I calculated from the oldest cost price to the most recent and it was correct. Thank you again. 🙂
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