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March June 2016 Emsee Q3a

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › March June 2016 Emsee Q3a

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  • May 14, 2018 at 8:10 pm #451931
    Avatarmeganlvm
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    Hi

    Q3a answer shown weighted average carrying amount was calculated by accumulating its cost. Why is it (20+50+70+120+170) and not (20+50+50+50)?

    Thanks. Appreciate

    Megan

    May 16, 2018 at 8:09 pm #452313
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7235
    • ☆☆☆☆☆

    Hi,

    It is because we are weighting the carrying value, so after each successive investment the carrying value will increase by the amount spent each month. We need to work out the average carrying value, not the average amount spent.

    Thanks

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