ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 700 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 350
10 Jan 600 720
17 Jan 400
22 Jan 200 648
28 Jan 700

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

= 700 + 600 +200

=1500

No of units sold during the month

=350 +400 +700

=1450

No of units at the end of the month

= 1500 -1450

=50 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 700 800 560,000
10 Jan 600 720 432,000
22 Jan 200 648 129,600
Total 1,500 1,121,600
Unit price 748
Month end Unit 50
Inventory Value 37,387

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

To do another topic in ACCA FA2