Your firm's inventory valuation method is AVCO. On 1 June, there were 60 units in the inventory valued at $12 each. On 8 June, 40 units were purchased for $15 each and a further 50 units were purchased for $18 each on 14 June. On 21 June, 78 units were sold for $20 each. What is the value of the closing inventory on 30 June?   Select one: A. $900 B. $1,110  C. $1,125 D. $1,010

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A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…

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A:

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A: Answer :Gross margin = Total sales - cost of good sold Total sales = 900 * $7.80 = $7,020 Cos of…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.