Respuesta :
When determining inventory value, an accounting calculation called the average-cost method is employed which is 53× $10, or any event equation.
How to solve average-cost, and (COGS)?
Businesses might benefit from the average-cost method for several reasons. It uses the weighted average of all the inventory that the company bought over a certain period to value the cost of goods sold (COGS).
consider the value $530 can be satisfied through following methods.
If quantity of perches is 53, and the value per purchase is $10, and any date or time.
∴ quntity of perches × value per purchase.
= 53×$10
=$530.
You can take any relevant equation.
The time frame may be a month, a quarter, or a whole year as long as it is constant. The cost of items that are remaining on hand as inventory is also given value in addition to the cost of goods sold.
Ex: $485 + $530 + $530 = $1545.
Businesses must include the cost of goods sold (COGS) on an income statement to maintain correct financial records. The company's gross margin is then calculated by subtracting the COGS amount from sales revenue.
$1545 - 0 = $1545.
To know more about average-cost method, use the link.
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