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black Machineries Corp. which has a March 31 year end, manufactures various spare parts for industrial machine including product A. At the end of March
black Machineries Corp. which has a March 31 year end, manufactures various spare parts for industrial machine including product A. At the end of March 20A, there were 3,000 units of this product in the warehouse and their assigned value was P3,300. At the end of March 20B, there were 5,500 units of Product A in the warehouse and their assigned value was P6,370. During he last two years, the company produced the following quantities of Product A.
- What is the method used by the company in calculating the inventory as at March 31, 20B?.
Production for 20B-C Production for 20A-B MONTH Units Unit Cost Units Unit Cost April 2,000 1.70 1,800 1.20 May 4,000 1.90 2,200 1.30 June 3,500 1.95 1,500 1.25 July 2,000 2.00 6,000 1.30 August 6,000 2.05 4,500 1.40 September 5,000 2.75 3,000 1.50 October 4,500 3.00 3,500 1.60 November 1,000 3.10 5,000 1.55 December 2,500 3.05 6,500 1.55 January February March 4,000 3.25 4,000 1.60 6,500 3.25 6,500 1.65 4,000 3.30 5,000 1.70 On March 20C, there were 6,000 units of Product A in inventory. All sales during the two-year period were made at a price of P4.90 per
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