A firm has the following transactions with its product R.1 January 20X1 Opening inventory：
I February 20X1 nil Buys 10 units at $300 per unitII
February 20X1 1 April 20X1 Buys 12 units at $250 per unit
1 August 20X1 1 December 20X1 Sells 8 units at $400 per unit
Buys 6 units at $200 per unit Sells 12 units at $400 per unit
The firm uses periodic weighted average cost (AVCO) to value its inventory.
What is the inventory value at the end of the year?
* 4,500/ 10 Price per unit under periodic weighted average cost:= Total cost /(opening quantity + total quantity received)=
($300 x 10) + ($250 x 12) + ($200 x 6)/(0+10+12 + 6)= $257.14 per unit.
Valuation of closing inventory of 8 units (10+12-8+6-12) x $257.14 = $2,057.12
多做几道
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful
representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error
Which of the following accounting concepts means that similar items should receive a similar accounting treatment?
Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy
Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for
Financial Reporting?
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