Financial Statements paper 2 1.5c

Deaniedani

How do you get the answer of £636. I can not figure it out. Could someone please help?

Irrorate

It's using AVCO.
01/07/X0: Stock 50u @ £8 = £400
09/03/X1: Buy 30u @ £12 = £360
12/05/X1: Buy 20u @ £15 = £300
Total cost: 100 units @ £1060 (avg £10.60/unit)
27/06/X1: Sell 40u @ £18 = £720

Remaining: 60 units @ avg £10.60/unit = £636 total cost.

Deaniedani

I would of never got that, thank you so much.