ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 400 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 200
10 Jan 600 540
17 Jan 500
22 Jan 700 486
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)?

ACCA FA2 VALUE OF SALES 2

Suggested Solution.

No of units available for sales

= 400 + 600 +700

=1700

No of units sold during the month

=200 +500 +200

=900

No of units at the end of the month

= 1700 -900

=800 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 400 600 240,000
10 Jan 600 540 324,000
22 Jan 700 486 340,200
Total 1,700 904,200
Unit price 532
Month end Unit 800
Inventory Value 425,506

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

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