On the basis of the information given below, find the value of the Closing Inventory:
- A20,000
- B40,000
- C60,000
- D80,000
Solution & Step-by-step Explanation
We use the standard formula for Average Inventory:
Substitute the values:
40,000 \times 2 = 20,000 + \text{Closing Inventory}}
Substitute the values:
40,000 \times 2 = 20,000 + \text{Closing Inventory}}