Hi,
please look into this costing issue
1) Purchase1 item1 100 @ 6.071
2) Purchase2 item1 10 @ 3.1
Avgcost = ((100 * 6.071) + (10 * 3.1)) / 100 + 10
= 607.1 + 31 / 110
= 638.1 / 110
= 5.8
3) Sales1 item1 5 @ 5.8
current stock is 105
Now to cancel the Purchase1 as entry was wrong
we need to reverse the cost
4) Purchase return of purchase1
Avgcost = ((105 * 5.8) - (100 * 6.071)) / 105 - 100
= 609 - 607.1 / 5
= 1.9 / 5
= 0.38
which seems to be wrong
thank in advance