If the average cost method of inventory (stock) valuation is used, what is the cost per DVD

Question:

If the average cost method of inventory (stock) valuation is used, what is the cost per DVD player at closing inventory (stock)?

(a) £109.70

(b) £114.00

(c) £120.60

(d) £122.50

The following information applies to question.

On 31 December Year 1, James White and Co carried out its annual physical stocktaking counting 25 DVD players, each of which had cost £100. During Year 2, further purchases were made as follows:

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Annual sales totalled 52 DVD players at total sales revenue of £9,350. Dates of sale are not recorded.

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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Question Posted: Mar 06, 2024 07:01 AM

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If the average cost method of inventory (stock) valuation is used, what is the cost per DVD

Question:

Month March May June September November DVD players purchased 5 10 8 6 12 Unit price 100 110 115 120 125

Step by Step Answer:

a The average is 10970 as shown in the calcu...View the full answer

Financial Accounting

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