Page 113 - F2 - MA Integrated Workbook STUDENT 2018-19
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Accounting for materials
4.3 Cumulative weighted average
Example 7
Date Receipts Issues Balance
Qty Per Value Qty Per unit Value Qty Value
unit
01/08 150 $150
03/08 200 $1.20 $240 350 $390
09/08 250 $1.1143 $279 100 $111
13/08 250 $1.30 $325 350 $436
16/08 200 $1.2457 $249 150 $187
Advantages Disadvantages
AVCO A compromise on inventory The average price rarely reflects the
valuation and issues. actual purchase price of the material.
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