The following are the details of the spare parts of a Paper Factory : 1-1-2025 Opening Inventory Nil 1-1-2025 Purchases 10 units @300 per unit…
CA Foundation · Accounting · MTP · April 2025
The following are the details of the spare parts of a Paper Factory : 1-1-2025 Opening Inventory Nil 1-1-2025 Purchases 10 units @300 per unit 15-1-2025 Issued for consumption 5 units 1-2-2025 Purchases 20 units @400 per unit Freight incurred 500 15-2-2025 Issued for consumption 10 units 20-2-2025 Issued for consumption 10 units Find out the value of Inventory as on 31.3.2025, if the company follows Weighted Average Method.
Suggested Answer and Working Notes:
Calculation of the value of Inventory of a Paper Factory as on 31-3-2025 Date Receipts Issues Balance Units Rate Amount Units Rate Amount Units Rate Amount 1-1-2025 Nil 1-1-2025 10 300 3,000 10 300 3,000 15-1-2025 5 300 1,500 5 300 1,500 1-2-2025 20 425 8,500* 25 400 10,000 15-2-2025 10 400 4,000 15 400 6,000 20-2-2025 10 400 4,000 5 400 2,000 Therefore, the value of Inventory as on 31-3-2025 = 5 units @400 = 2,000 * Total cost of inventory purchased on 1-2-2025 = (20 * 400) + 500 = 8,500
Topics: Inventories
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