Use the information below to answer this question.
Jejelaye Plc stock records for 2009 was given below:
Jan 1 received 100 units at N1.00
Jan 8 received 260 units at N1.05
Jan 20 issued 700units at ………
Feb 3 received 400 units at N1.15
What will be the issued price of 700 units, using simple average method
Jejelaye Plc stock records for 2009 was given below:
Jan 1 received 100 units at N1.00
Jan 8 received 260 units at N1.05
Jan 20 issued 700units at ………
Feb 3 received 400 units at N1.15
What will be the issued price of 700 units, using simple average method
-
A.
N1.183 -
B.
N1.025 -
C.
N1.00 -
D.
N1.05
Correct Answer: Option B
Explanation
simple average method usually add up all receipt prices ahead of the issued material divided by 2