ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 800 units of a particular item in inventory. These were valued at $800 per unit. During January, the purchase and sales of the item were:

Date Units Price per unit Sales (units)
5 Jan 400
10 Jan 600 720
17 Jan 800
22 Jan 100 648
28 Jan 100

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

= 800 + 600 +100

=1500

No of units sold during the month

=400 +800 +100

=1300

No of units at the end of the month

= 1500 -1300

=200 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 800 800 640,000
10 Jan 600 720 432,000
22 Jan 100 648 64,800
Total 1,500 1,136,800
Unit price 758
Month end Unit 200
Inventory Value 151,573

To do the same topic again in ACCA FA2 Value of sales 2

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