Elements of costing - AVCO

luce_xo

Hi there,

Sorry for another question but my exam is next week so desperately trying to get myself as many marks as possible!!

Can anyone tell me how to work out the AVCO (average) of inventory??

I can work out the average of the value of issue but I can never seem to work out the correct answer for the inventory?

Thanks

clees

if you have 10 items of inventory that cost £10 each and 10 items that cost you £15 each
your average is £12.5

there for 20(inventory) x12.5(average cost) = £250