Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business recorded the following inventory transactions. 1 March opening inventory: 20 items at $7.50 each 3 March sales of inventory: 12 items at $9 each 6 March purchases of inventory: 18 items at $8.20 each What is the cost per unit of closing inventory on 7 March by using the AVCO (perpetual) method?

  • A$7.29
  • B$7.85
  • C$7.98
  • D$8.23

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