AVCO

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
It was weeks and weeks ago since I did AVCO looking back on my notes I am getting confused exactly how to calculate it again. No probs with LIFO and FIFO. Also how do you decide which is the best method to use?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AVCO

    Tracey
    In the stock balance
    Look at the total value of the stock and divide this by the total number of units this gives you a cost per unit to use for issues.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AVCO

    Tracey
    To try to give you an opportunity to apply this I used a question from the Dec 2006 ECR exam
    copies available at http://www.aat.org.uk/other_files/pep/Dec2006/Dec_2006_ECR_-_questions.pdf

    and have put the part candidates would be expected to complete into a spreadsheet

    this can be accessed at
    http://www.accountancystudents.co.uk/forums/viewtopic.php?mode=attach&id=119
    (Which I hope Julian won't mind)

    If you look at the spreadsheet
    (Chichester College hasn't put any nasty bugs on it so it should be pretty safe!!)
    You will see I've presented the Nov 6th balance as a breakdown and put the average cost per litre in the space to the side of the box

    I hope this will bring back enough memories of AVCO to enable you to complete the stock record card.

    sandy.hood@chichester.ac.uk
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AVCO

    Thank you very much for your help

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