ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 600 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 300
10 Jan 700 720
17 Jan 600
22 Jan 500 648
28 Jan 500

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

= 600 + 700 +500

=1800

No of units sold during the month

=300 +600 +500

=1400

No of units at the end of the month

= 1800 -1400

=400 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 600 800 480,000
10 Jan 700 720 504,000
22 Jan 500 648 324,000
Total 1,800 1,308,000
Unit price 727
Month end Unit 400
Inventory Value 290,667

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

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