ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 500 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 250
10 Jan 600 360
17 Jan 200
22 Jan 600 324
28 Jan 300

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

= 500 + 600 +600

=1700

No of units sold during the month

=250 +200 +300

=750

No of units at the end of the month

= 1700 -750

=950 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 500 400 200,000
10 Jan 600 360 216,000
22 Jan 600 324 194,400
Total 1,700 610,400
Unit price 359
Month end Unit 950
Inventory Value 341,106

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

To do another topic in ACCA FA2