Question

On 15-01-2020 Opening Stock 50 units @ Rs. 30 per unit 01-02-2020 Purchases 200 units @ Rs. 40 per unit 15-02-2020 Issued for Consumption 100 units The value of closing stock on 15-02-2020 on Weighted Average Cost basis is

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Answer 1

The value of inventory at the end of the week Under the Weighted Average Method is Rs. 3800.

Step-by-step explanation:

• We can apply Tabular format to find the average cost of the stock at 15/02/2020 as:
• Calculation of Closing Stock:
• 15th January 2020: Opening balance:

        50 units @ Rs 30 = 50 × 30 = Rs. 1500

• Issue: 1st February, 2020:

        200 units, @ Rs 40 = 200 x 40 = Rs. 8000

• Issue: 15th February 2020, price per unit:

       $\dfrac{9500}{250}= Rs. 38$

• Weighted Average Cost basis is:

        $\boxed {100\times 38 =Rs.3800}$