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Good Evening John,
I am struggling on where the figure 7058 came from.
Units $
Op. Inventory 300×25 300 7500
Issue on 2nd Jan 250×25 (250) (6250)
50 1250
Receipt on 12th Jan 400 10,300 (400 x 25.75)
450 11,550
Issues on 21 and 29 Jan (275) (7058)
(11550/450)x(200+75) 175 4492Many thanks
After the 12 Jan receipt there were 450 units with a cost of $11,550.
Therefore the average cost per unit is 11,550/450.
They issued a total of 275 units, and therefore the cost of these is 275 x 11,550/450 = $7058
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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