ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 800 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 400
10 Jan 500 540
17 Jan 600
22 Jan 600 486
28 Jan 400

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 + 500 +600

=1900

No of units sold during the month

=400 +600 +400

=1400

No of units at the end of the month

= 1900 -1400

=500 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 800 600 480,000
10 Jan 500 540 270,000
22 Jan 600 486 291,600
Total 1,900 1,041,600
Unit price 548
Month end Unit 500
Inventory Value 274,105

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

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