Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business has the inventory transactions shown below. Opening inventory on 1 January: 16 items at $525 each. Receipts on 3 January: 24 items at $675 each. Issues on 5 January: 28 items. The business uses the AVCO method to value inventory. What value did closing inventory have on 7 January?

  • A$6300
  • B$7200
  • C$7380
  • D$8100

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