) Using Average Cost (AVCO) Method, you are required to calculate: 1) Cost of inventory as on 31 January 2020 2) Cost of goods sold during the month of January 2020. Show all the workings clearly. Molly Ltd produced goods in batches. On 1 January 2020 it had Opening WIP of 7,500
Question 2
A) Haly Ltd, a Limited Liability Company, maintains inventory on Average Cost (AVCO) bases. On 1 January 2020, it had opening inventory of 300 units at OMR 10 per unit. The following transactions in respect of Material ‘abc’ occurred during the month of January 2020.
|
Month |
Purchase (Units) |
Price per unit (OMR) |
Issued (Units) |
|
2 January 2020 |
1200 |
12 |
|
|
3 January 2020 |
|
|
500 |
|
10 January 2020 |
900 |
13 |
|
|
15 January 2020 |
|
|
1200 |
|
20 January 2020 |
600 |
14 |
|
|
29 January 2020 |
|
|
800 |
A) Using Average Cost (AVCO) Method, you are required to calculate:
1) Cost of inventory as on 31 January 2020
2) Cost of goods sold during the month of January 2020.
Show all the workings clearly.
- Molly Ltd produced goods in batches. On 1 January 2020 it had Opening WIP of 7,500 units, 80% completed. Also, Molly Ltd started and completed 18,000 units in the month of January 2020. By the end of January 2020, it had closing WIP of 6,000 units, 60% completed. Total Production cost in the month of January 2020 is $220,800.
You are required to calculate:
The Closing WIP (in units) and in value carried forward to the next period.
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