Question

Opening stock: 1000 units @Rs. 15 per
unit, purchases: 500 units @Rs. 20 per
unit, Sales: 1200 units. Average Rate for
Sale is​

Answer 1

• To apply the average cost method, divide Goods Available for Sale (Beginning Inventory $ + Net Purchases $) by the number of units of inventory available for sale. That will determine an average cost per unit.

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