• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Kit Question Kaplan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Kit Question Kaplan

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 28, 2021 at 4:00 am #639268
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    If an entity uses the continuous weighted average cost method to value closing inventory, which of the following statements is true?

    A) Unit average cost is recalculated each time there is a purchase of inventory
    B) Unit average cost is calculated once only at the end of an accounting period
    C) Unit average cost is recalculated each time there is a sale of goods
    D) Unit average cost is recalculated each time there is a purchase or a sale
    Answer is A.

    Why C is incorrect? Conclusion is same for both. We either take average for every purchase or take average before any sale will give same results.
    Like we have opening inventory 5 units at 25. We purchased 10 units for 60. We purchased 20 units for 100. We sold 20 goods.
    Average cost per unit (5.286 here) would be equal in both cases. Either take before any sale or after any purchase?

    October 28, 2021 at 8:25 am #639287
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    When there is a sale we do not recalculate the average unit cost, we subtract the sales using the average cost per unit that has already been calculated after the previous purchase.

    October 28, 2021 at 8:41 am #639290
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Thank you professor.

    October 28, 2021 at 8:58 am #639296
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Kit Question Kaplan’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • MikeLittle on Civil Law, Common Law, Criminal Law – ACCA Corporate and Business Law (LW) (ENG)
  • beata443c on Civil Law, Common Law, Criminal Law – ACCA Corporate and Business Law (LW) (ENG)
  • heary123@ on Group SFP – Unrealised profit and inventory in transit – ACCA Financial Reporting (FR)
  • heary123@ on Group SFP – Unrealised profit and inventory in transit – ACCA Financial Reporting (FR)
  • John Moffat on PM Chapter 15 Questions Financial Performance Measurement

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in