PRACTICE PROBLEM

AVERAGE COSTING

May 1 Beginning balance: 2,800 units @ P12.00 per unit

4 Issued 1,200 units

6 Received 1,000 units @ P13.30 per unit

8 Issued 1,000 units

14 Received 400 units @ P14.00 per unit

17 Issued 800 units

20 Received 500 units @ P14.16 per unit

C. Average Costing
Date Receipts Issues Balance
Quantity Unit Amount Quantity Unit Amount Quantity Unit Amount
Cost Cost Cost
July 1 Balance 2,800 P12 P33,600
4 1,200 P12 P14,400 1,600 12 19,200
6 1,000 P13.3 P13,300 2,600 12.5 32,500
0
8 1,000 12.5 12,500 1,600 12.5 20,000
14 400 14 5,600 2,000 12.80 25,600
17 600 12 7,200 1,200 12.80 15,360
20 500 14.16 7,080 1,700 13.20 22,440