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A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw-materials during the week are as follows:
1.12.2005 opening stock 50 units value Rs.
2,200. 2.12.2005 purchased 100 units @Rs.47.
4.12.2005 issued 50 units.
5.12.2005 purchased 200 units @Rs.48.
The value of inventory at the end of the week and the unit weighted average costs is
  • a)
    Rs.14200 – 47.33
  • b)
    Rs.14300 – 47.67
  • c)
    Rs.14000 – 46.66
  • d)
    Rs.14400 – 48.00
Correct answer is option 'A'. Can you explain this answer?
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A company is following weighted average cost method for valuing its in...
Calculation of Weighted Average Cost

Opening Stock:
- Quantity: 50 units
- Value: Rs.2,200
- Unit cost: 2,200/50 = Rs.44

Purchase on 2.12.2005:
- Quantity: 100 units
- Value: Rs.4,740
- Unit cost: 4,740/100 = Rs.47.4

Issue on 4.12.2005:
- Quantity: 50 units
- Value: 50 x 44 (unit cost of opening stock) = Rs.2,200

Purchase on 5.12.2005:
- Quantity: 200 units
- Value: Rs.9,600
- Unit cost: 9,600/200 = Rs.48

Total Quantity and Value:
- Quantity: 50 (opening stock) + 100 (purchase on 2.12.2005) + 200 (purchase on 5.12.2005) - 50 (issue on 4.12.2005) = 300 units
- Value: 2,200 (opening stock) + 4,740 (purchase on 2.12.2005) + 9,600 (purchase on 5.12.2005) - 2,200 (issue on 4.12.2005) = Rs.14,340

Weighted Average Cost:
- Total cost: Rs.14,340
- Total quantity: 300 units
- Weighted average cost: 14,340/300 = Rs.47.33

Answer:

The value of inventory at the end of the week and the unit weighted average costs is Rs.14,200 and Rs.47.33 respectively.
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A company is following weighted average cost method for valuing its in...
But i think the correct option is b.
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A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw-materials during the week are as follows:1.12.2005 opening stock 50 units value Rs.2,200. 2.12.2005 purchased 100 units @Rs.47.4.12.2005 issued 50 units.5.12.2005 purchased 200 units @Rs.48.The value of inventory at the end of the week and the unit weighted average costs isa)Rs.14200 – 47.33b)Rs.14300 – 47.67c)Rs.14000 – 46.66d)Rs.14400 – 48.00Correct answer is option 'A'. Can you explain this answer?
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A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw-materials during the week are as follows:1.12.2005 opening stock 50 units value Rs.2,200. 2.12.2005 purchased 100 units @Rs.47.4.12.2005 issued 50 units.5.12.2005 purchased 200 units @Rs.48.The value of inventory at the end of the week and the unit weighted average costs isa)Rs.14200 – 47.33b)Rs.14300 – 47.67c)Rs.14000 – 46.66d)Rs.14400 – 48.00Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw-materials during the week are as follows:1.12.2005 opening stock 50 units value Rs.2,200. 2.12.2005 purchased 100 units @Rs.47.4.12.2005 issued 50 units.5.12.2005 purchased 200 units @Rs.48.The value of inventory at the end of the week and the unit weighted average costs isa)Rs.14200 – 47.33b)Rs.14300 – 47.67c)Rs.14000 – 46.66d)Rs.14400 – 48.00Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw-materials during the week are as follows:1.12.2005 opening stock 50 units value Rs.2,200. 2.12.2005 purchased 100 units @Rs.47.4.12.2005 issued 50 units.5.12.2005 purchased 200 units @Rs.48.The value of inventory at the end of the week and the unit weighted average costs isa)Rs.14200 – 47.33b)Rs.14300 – 47.67c)Rs.14000 – 46.66d)Rs.14400 – 48.00Correct answer is option 'A'. Can you explain this answer?.
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