ACCA FA2 INVENTORY VALUE 2
At 1 January 20X3 Wasan had 100 units of a particular item in inventory. These were valued at $900 per unit. During January, the purchase and sales of the item were:
| Date | Units | Price per unit | Sales (units) |
| 5 Jan | 50 | ||
| 10 Jan | 700 | 810 | |
| 17 Jan | 100 | ||
| 22 Jan | 300 | 729 | |
| 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
= 100 + 700 +300
=1100
No of units sold during the month
=50 +100 +900
=1050
No of units at the end of the month
= 1100 -1050
=50 Units
Periodic weighted average rate computation
| Date | Units | Price per unit | Value |
| 1 Jan | 100 | 900 | 90,000 |
| 10 Jan | 700 | 810 | 567,000 |
| 22 Jan | 300 | 729 | 218,700 |
| Total | 1,100 | 875,700 | |
| Unit price | 796 | ||
| Month end Unit | 50 | ||
| Inventory Value | 39,805 |
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