ACCA FA2 INVENTORY VALUE 2
At 1 January 20X3 Wasan had 800 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 | 400 | ||
| 10 Jan | 300 | 90 | |
| 17 Jan | 700 | ||
| 22 Jan | 800 | 81 | |
| 28 Jan | 600 |
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
= 800 + 300 +800
=1900
No of units sold during the month
=400 +700 +600
=1700
No of units at the end of the month
= 1900 -1700
=200 Units
Periodic weighted average rate computation
| Date | Units | Price per unit | Value |
| 1 Jan | 800 | 100 | 80,000 |
| 10 Jan | 300 | 90 | 27,000 |
| 22 Jan | 800 | 81 | 64,800 |
| Total | 1,900 | 171,800 | |
| Unit price | 90 | ||
| Month end Unit | 200 | ||
| Inventory Value | 18,084 |
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