A company values its inventory using the AVCO method It started trading on 1 January 20X7 with no inventory The following transactions have taken place February Bought 500 items $210 each March Sold 200 items $60,000 August Bought 300 items $216 each September Sold 200 items $60,000 January 20X8 Sold 200 items $60,000 What is the value of the closing inventory at 31 December 20X7, based on period end inventory records Group of answer choices $84,900 $85,200 $85,500 $120,000

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Question: A company values its inventory using the AVCO method. It started trading on 1 January 20X7 with no inventory. The following transactions have taken place.

A company values its inventory using the AVCO method. It started trading on 1 January 20X7 with no inventory. The following transactions have taken place.

February	Bought	500 items @ $210 each
March	Sold	200 items @ $60,000
August	Bought	300 items @ $216 each
September	Sold	200 items @ $60,000
January 20X8	Sold	200 items @ $60,000

What is the value of the closing inventory at 31 December 20X7, based on period end inventory records?

Group of answer choices

$84,900

$85,200

$85,500

$120,000

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