ACCA FA2 VALUE OF SALES 2
At 1 January 20X3 Wasan had 400 units of a particular item in inventory. These were valued at $400 per unit. During January, the purchase and sales of the item were:
| Date | Units | Price per unit | Sales (units) |
| 5 Jan | 200 | ||
| 10 Jan | 700 | 360 | |
| 17 Jan | 900 | ||
| 22 Jan | 900 | 324 | |
| 28 Jan | 900 |
Wasan values inventory on the periodic weighted average basis.
What is the value of Wasan's inventory at 31 January 20X3 (to the nearest $1)?
Suggested Solution.
No of units available for sales
= 400 + 700 +900
=2000
No of units sold during the month
=200 +900 +900
=2000
No of units at the end of the month
= 2000 -2000
=0 Units
Periodic weighted average rate computation
| Date | Units | Price per unit | Value |
| 1 Jan | 400 | 400 | 160,000 |
| 10 Jan | 700 | 360 | 252,000 |
| 22 Jan | 900 | 324 | 291,600 |
| Total | 2,000 | 703,600 | |
| Unit price | 352 | ||
| Month end Unit | 0 | ||
| Inventory Value | 0 |
To do the same topic again in ACCA FA2 Value of sales 2
To do another topic in ACCA FA2