Inventory
gareth1985
Registered Posts: 24
Hi there,
after getting the £22 per kilo figure. I just don't know how to get those other figures. Please help.
Thanks,
Gareth
after getting the £22 per kilo figure. I just don't know how to get those other figures. Please help.
Thanks,
Gareth
0
Comments
-
Hi Gareth,
I'll work all the way through so you can see the whole process if it helps.
So the total of the inventory is (500+1200+2000) = 3700 kilos.
Total prices are (£26x500=13000, £22x1200=26400, £21x2000=42000) = £81400.
As we are doing AVCO, you divide the total cost by the total kilos and you will get the £22 per kilo.
It then says there was an issue of 1800 kilos for production and you have worked out the cost per kilo above.
1800 kilos x £22 = £39600
You started with 3700 kilos in inventory, there was an issue of 1800 kilos for production (3700-1800), so you are left with 1900 kilos left in the inventory.
I hope this helps and makes sense!
VickieAATQB - Studying Level 40 -
Hi Vickie,
that all makes perfect sense. Thank you so much for the help:)0
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