ACCA FA2 VALUE OF SALES 2
At 1 January 20X3 Wasan had 100 units of a particular item in inventory. These were valued at $600 per unit. During January, the purchase and sales of the item were:
Date | Units | Price per unit | Sales (units) |
5 Jan | 50 | ||
10 Jan | 800 | 540 | |
17 Jan | 300 | ||
22 Jan | 800 | 486 | |
28 Jan | 200 |
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 + 800 +800
=1700
No of units sold during the month
=50 +300 +200
=550
No of units at the end of the month
= 1700 -550
=1150 Units
Periodic weighted average rate computation
Date | Units | Price per unit | Value |
1 Jan | 100 | 600 | 60,000 |
10 Jan | 800 | 540 | 432,000 |
22 Jan | 800 | 486 | 388,800 |
Total | 1,700 | 880,800 | |
Unit price | 518 | ||
Month end Unit | 1,150 | ||
Inventory Value | 595,835 |
To do the same topic again in ACCA FA2 Value of sales 2
To do another topic in ACCA FA2