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 | 240 | 360 |
| Feb 7 purchased | 200 | 432 |
| Feb 14 sold | 360 | |
| Feb 21 purchased | 40 | 475 |
| Feb 28 sold | 40 |
What is the value of inventory at 28 February using the cumulative weighted Average cost method?
Suggested solutions:
Total No of units purchased: 240 + 200 +40 = 480
Total No of units sold:360 + 40 =400
Balance No of units:80
| Date | unit | Price | Valuation |
| Feb 1 In stock | 240 | 360 | 86,400 |
| Feb 7 purchased | 200 | 432 | 86,400 |
| 440 | 172,800 | ||
| Feb 14 sold | 360 | ||
| 80 | 31,418 | ||
| Feb 21 purchased | 40 | 475 | 19,000 |
| 120 | 50,418 | ||
| Feb 28 sold | 40 | ||
| 80 | 33,612 |
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