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 400 720
17 Jan 300
22 Jan 400 648
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

= 700 + 400 +400

=1500

No of units sold during the month

=350 +300 +400

=1050

No of units at the end of the month

= 1500 -1050

=450 Units

Periodic weighted average rate computation

Date Units Price per unit Value
1 Jan 700 800 560,000
10 Jan 400 720 288,000
22 Jan 400 648 259,200
Total 1,500 1,107,200
Unit price 738
Month end Unit 450
Inventory Value 332,160

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

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