Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A firm adds the following quantities of raw material to inventory. 120 units at $38$ per unit, giving a total of $4560$ 100 units at $40$ per unit, giving a total of $4000$ 60 units at $44$ per unit, giving a total of $2640$ It then issued 240 units. Inventory is valued by the weighted average (AVCO) method. What was the closing value of inventory?

  • A$1440$
  • B$1520$
  • C$1600$
  • D$1760$

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