Your organisation uses the cumulative weighted average cost method of valuing inventories. During the month , the following inventory details were recorded.
Date | unit | Price |
Feb 1 In stock | 360 | 360 |
Feb 7 purchased | 160 | 432 |
Feb 14 sold | 200 | |
Feb 21 purchased | 160 | 475 |
Feb 28 sold | 160 |
What is the value of inventory at 28 February using the cumulative weighted Average cost method?
Suggested solutions:
Total No of units purchased: 360 + 160 +160 = 680
Total No of units sold:200 + 160 =360
Balance No of units:320
Date | unit | Price | Valuation |
Feb 1 In stock | 360 | 360 | 129,600 |
Feb 7 purchased | 160 | 432 | 69,120 |
520 | 198,720 | ||
Feb 14 sold | 200 | ||
320 | 122,289 | ||
Feb 21 purchased | 160 | 475 | 76,000 |
480 | 198,289 | ||
Feb 28 sold | 160 | ||
320 | 132,193 |
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