Unit of item for sale Jan 1 inventory 27 unit 40000 Feb 19

Unit of item for sale Jan 1 inventory 27 unit @ 400.00, Feb 19 purchase 56 unit @ 460.00, June 8 purchase 62 unit @ 540.00, Oct purchase 58 unit @550.00 What is the inventory cost by the average cost method

So, average cost value of Inventory

= Total value of Opening Inventory and Purchases / Total quantity of opening Inventory and purchases

= $ 101,940 / 203

= $ 502.17 per unit

Calculations		A	B	C = A x B
Date	Particulars	Quantity	Rate	Value
1-Jan	Opening Inventory	27	400	10,800
19-Feb	Purchases	56	460	25,760
8-Jun	Purchases	62	540	33,480
1-Oct	Purchases	58	550	31,900
	Total	203		101,940

Unit of item for sale Jan 1 inventory 27 unit @ 400.00, Feb 19 purchase 56 unit @ 460.00, June 8 purchase 62 unit @ 540.00, Oct purchase 58 unit @550.00 What is

Unit of item for sale Jan 1 inventory 27 unit 40000 Feb 19

Solution

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