AVCO Unit 5 FRA

jewels.p

Does anyone have an easy way of explaining AVCO on Stock Valuation?

Also how do you decide which Stock Valuation to use in a business?

Any help appreciated.

Thanks:001_smile:

rachy1975

Receipts Issues Balance
Jan 40 £3.00 £120.00
Feb 20 £3.60 £72 40 £3.00 £120.00
20 £3.60 £72.00
60 £3.20 £192.00
Mar 36 £3.20 £115.20 24 £3.20 £76.80
Apr 20 £3.75 £75.00 24 £3.20 £76.80
20 £3.75 £75.00
44 £3.45 £65.55


AVCO is adding your balance totals together and dividing them into your number off stock to give you an average…see example above....hope this helps

rachy1975

my example has gone awry....so send me you e mail if you like and i can send it to you

:001_smile: