To support a possible change of cost formula, Paimane's controller quantifies the measurement difference. Data for the year, with no opening inventory: purchase of 2,000 units items at a unit cost of 20, then of 3,000 units items at 25; 3,500 units items sold. Weighted average cost computed over the period (teaching assumption). What is closing inventory under each formula?
- Quantity of batch 1
- 2,000
- Unit cost of batch 1
- 20
- Quantity of batch 2
- 3,000
- Unit cost of batch 2
- 25
- Units sold
- 3,500