Hello.
I'm abit confused by this question. I understand the concept of valuing closing inventory using weighted average, but have trouble understanding this question.
@A wholesaler had opening inventory of 300 units of product Emm valued at $25 per unit at the beginning of Jan. Folling receipts and sales were recorded in Jan
Date Issues
2 Jan 250
12 Jan 400
21 Jan 200
29 Jan 75
Purchase cost of receipts was $25.75 per unit. Using weighted avg, calculate the value of closing stock.
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My question is this: How do you which were sales and which were receipts by just looking at the question. I assumed that this was the total inventory level, so must have been an issue of sale of 50 units on 2nd, purchased 150 on 12th, but that was wrong.
Can you please help? How am I reading the question wrong?
Thanks.
Ask the Tutor ACCA MA
BPP Practice and revision kit- 6.22- pg 27
It is a typing mistake by BPP :-(
It should say that the 400 on 12 January is a receipt. (The others are all issues)
Ah! Brilliant, thank you.
You are welcome :-)
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