ACCA FA2 INVENTORY VALUE 2
At 1 January 20X3 Wasan had 600 units of a particular item in inventory. These were valued at $300 per unit. During January, the purchase and sales of the item were:
| Date | Units | Price per unit | Sales (units) |
| 5 Jan | 300 | ||
| 10 Jan | 200 | 270 | |
| 17 Jan | 200 | ||
| 22 Jan | 800 | 243 | |
| 28 Jan | 900 |
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)?
Suggested Solution.
No of units available for sales
= 600 + 200 +800
=1600
No of units sold during the month
=300 +200 +900
=1400
No of units at the end of the month
= 1600 -1400
=200 Units
Periodic weighted average rate computation
| Date | Units | Price per unit | Value |
| 1 Jan | 600 | 300 | 180,000 |
| 10 Jan | 200 | 270 | 54,000 |
| 22 Jan | 800 | 243 | 194,400 |
| Total | 1,600 | 428,400 | |
| Unit price | 268 | ||
| Month end Unit | 200 | ||
| Inventory Value | 53,550 |
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