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Your firm values inventory using the weighted average cost method. At 1 October 20X8, there were 60 units in inventory valued at $12 each. On 8 October, 40 units were purchased for $15 each, and a further 50 units were purchased for $18 each on 14 October. On 21 October, 75 units were sold for $1,200.

What was the value of closing inventory at 31 October 20X8?

$ O

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Chapter6Accountingformaterials

Date Units Unit Inventory

value value

1 October Opening inventory 60 720

8 October Purchase 40 units at $15 40 600

14 October Purchase 50 units at $18 50 900

21 October Sold 75 units: cost (75) 14.80 (1,110)

31 October Closing inventory 75 14.80 1,110

多做几道

Explain what is meant by standard costing

Explain what is meant by a standard cost

Describe four types of standard.

Explain what is meant by a standard hour.

Give five possible sources of information from which a standard materials price may be estimated.

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