ACCA FA2 VALUE OF SALES 2

At 1 January 20X3 Wasan had 100 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 50
10 Jan 800 540
17 Jan 300
22 Jan 800 486
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

= 100 + 800 +800

=1700

No of units sold during the month

=50 +300 +200

=550

No of units at the end of the month

= 1700 -550

=1150 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 100 600 60,000
10 Jan 800 540 432,000
22 Jan 800 486 388,800
Total 1,700 880,800
Unit price 518
Month end Unit 1,150
Inventory Value 595,835

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

To do another topic in ACCA FA2