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BPP Practice and revision kit- 6.22- pg 27

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › BPP Practice and revision kit- 6.22- pg 27

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 10, 2018 at 10:01 am #467174
    mariaq
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    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.

    —-

    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.

    August 10, 2018 at 3:40 pm #467228
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54719
    • ☆☆☆☆☆

    It is a typing mistake by BPP 🙁

    It should say that the 400 on 12 January is a receipt. (The others are all issues)

    August 10, 2018 at 6:00 pm #467291
    mariaq
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Ah! Brilliant, thank you.

    August 11, 2018 at 9:07 am #467324
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54719
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘BPP Practice and revision kit- 6.22- pg 27’ is closed to new replies.

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