ACCA FA2 INVENTORY VALUE 2
At 1 January 20X3 Wasan had 900 units of a particular item in inventory. These were valued at $100 per unit. During January, the purchase and sales of the item were:
| Date | Units | Price per unit | Sales (units) |
| 5 Jan | 450 | ||
| 10 Jan | 300 | 90 | |
| 17 Jan | 400 | ||
| 22 Jan | 600 | 81 | |
| 28 Jan | 300 |
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
= 900 + 300 +600
=1800
No of units sold during the month
=450 +400 +300
=1150
No of units at the end of the month
= 1800 -1150
=650 Units
Periodic weighted average rate computation
| Date | Units | Price per unit | Value |
| 1 Jan | 900 | 100 | 90,000 |
| 10 Jan | 300 | 90 | 27,000 |
| 22 Jan | 600 | 81 | 48,600 |
| Total | 1,800 | 165,600 | |
| Unit price | 92 | ||
| Month end Unit | 650 | ||
| Inventory Value | 59,800 |
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