ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 400 units of a particular item in inventory. These were valued at $400 per unit. During January, the purchase and sales of the item were:

Date Units Price per unit Sales (units)
5 Jan 200
10 Jan 500 360
17 Jan 500
22 Jan 600 324
28 Jan 800

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)?

ACCA FA2 VALUE OF SALES 2

Suggested Solution.

No of units available for sales

= 400 + 500 +600

=1500

No of units sold during the month

=200 +500 +800

=1500

No of units at the end of the month

= 1500 -1500

=0 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 400 400 160,000
10 Jan 500 360 180,000
22 Jan 600 324 194,400
Total 1,500 534,400
Unit price 356
Month end Unit 0
Inventory Value 0

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