Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company values its inventory using the weighted average cost (AVCO) method. The details below are given for one inventory item. February 1: Opening balance, $20$ units at $4$ each February 14: Bought, $40$ units at $5$ each April 1: Bought, $40$ units at $8$ each May 22: Issued, $55$ units What was the overall cost of the units that were issued?

  • A$255$
  • B$270$
  • C$330$
  • D$345$

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