Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

During May, a business acquired these quantities of inventory: 4 May: $1000$ units at $12.00$ 20 May: $1000$ units at $14.00$ 28 May: $800$ units at $14.75$ On 22 May, $1200$ units were sold at $20$ each. The inventory’s net realisable value on 31 May was $24$ per unit. Opening inventory was nil. What would be the value of closing inventory when the AVCO method of valuing inventory is used?

  • A$21600$
  • B$21773$
  • C$22200$
  • D$38400$

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