Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A manufacturer applies the weighted average cost (AVCO) method to value inventory. The opening inventory amounted to $10$ units at $50$ each. Over the month: $30$ units were bought for $70$ each. $20$ units were sold for $80$ each. What was the inventory value at month end?

  • A$1200
  • B$1300
  • C$1400
  • D$1600

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