AVCO

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I understand the LIFO and FIFO methods and I do understand the AVCO, BUT<BR><BR>I have 50 @ 5.00 = 250 and new stock coming in at 100 @ 5.50 = 550<BR>So in total I have 150 units @ ? = 800<BR>So 800 / 150 = 5.33<BR><BR>But when I do 150 @ 5.33 = 799.50<BR><BR>So do I record 800 or 799.50 as my stock value.<BR><BR>Then 120 goes out - so thats 120 @ 5.33 = 639.60<BR><BR>and im totally lost what to record as my value!!!<BR><BR>Thanks in advance!<BR>Amanda

Comments

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

    U dont need to worry about small rounding figures.<BR>800 / 150 = 5.33333333 etc<BR>for examply yr 120 could be rounded to 640.00 as it 639.999999<BR>closing value 30 @ 5.33 = £159.9999 or £160.00<BR><BR>Little rounding up is expected. the computer would if it was on a spreadsheet!!<BR>Dont know if that helps u or not<BR>Shaz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    AVCO

    Hi, Amanda.<BR><BR>I sent a similar reply on the MSN group.<BR><BR>Hope it helps.<BR><BR>Mike<BR>

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