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QUESTION 24
Inventory is valued using AVCO. On 1 June X9 there were 60 units in inventory valued at $12
each. On 8 June 40 units were purchased for $15 each and a further 50 units were purchased
for $18 each on 14 June. On 21 June 75 units were sold for $20 each.
The value of closing inventory at 30 June X9 was:
A $1,110
B $1,010
C $900
D $1,125- Topics: 0
- Replies: 15
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on 1st june average cost of inventory is 12
on 8th june it becomes (60*12+40*15)=(1320/100)=13.20
on 14th june (60*12+40*15+50*18)=(2220/150)=14.8
on 21 june inventory were out of the warehouse at a cost of 14.8 (14.8*75)=1110
therefore remaining inventory (2220-1110)=1110
hence A is the answer
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