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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: 1-12-2011 opening inventory 50 units value ₹2,200 2-12-2011 purchased 100 units ₹47 4-12-2011 issued 50 units 5-12-2011 purchased 200 units ₹48. The value of inventory at the end of the week and the unit weighted average costs is a)₹14,200-₹47.33 b)₹14,300-₹47.67 c)₹14,000-₹46.66 d)₹14,400-₹48.00 Correct Answer is (A).Please Explain?
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A company is following weighted average cost method for valuing its in...
Details of Inventory Valuation using Weighted Average Cost Method

Opening Inventory:
- 50 units
- Value: ₹2,200

Purchase and Issue of Raw Materials during the Week:
- 2-12-2011: Purchased 100 units at ₹47
- 4-12-2011: Issued 50 units
- 5-12-2011: Purchased 200 units at ₹48

Calculation of Weighted Average Cost:
- Cost of Opening Inventory: 50 units x ₹44 (weighted average cost of previous week) = ₹2,200
- Cost of Purchase on 2-12-2011: 100 units x ₹47 = ₹4,700
- Cost of Purchase on 5-12-2011: 200 units x ₹48 = ₹9,600
- Total Units purchased: 100 + 200 = 300 units
- Total Cost of Purchases: ₹4,700 + ₹9,600 = ₹14,300
- Weighted Average Cost per unit: ₹14,300 / 300 = ₹47.67

Calculation of Ending Inventory:
- Units in Stock: 100 units (50 from opening inventory + 50 from purchase on 2-12-2011)
- Value of Ending Inventory: 100 units x ₹47.67 (weighted average cost) = ₹4,767

Final Answer:
- Value of Inventory at the end of the week: ₹4,767
- Unit Weighted Average Cost: ₹47.33
- Option (A) is the correct 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: 1-12-2011 opening inventory 50 units value ₹2,200 2-12-2011 purchased 100 units ₹47 4-12-2011 issued 50 units 5-12-2011 purchased 200 units ₹48. The value of inventory at the end of the week and the unit weighted average costs is a)₹14,200-₹47.33 b)₹14,300-₹47.67 c)₹14,000-₹46.66 d)₹14,400-₹48.00 Correct Answer is (A).Please Explain?
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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: 1-12-2011 opening inventory 50 units value ₹2,200 2-12-2011 purchased 100 units ₹47 4-12-2011 issued 50 units 5-12-2011 purchased 200 units ₹48. The value of inventory at the end of the week and the unit weighted average costs is a)₹14,200-₹47.33 b)₹14,300-₹47.67 c)₹14,000-₹46.66 d)₹14,400-₹48.00 Correct Answer is (A).Please Explain? 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: 1-12-2011 opening inventory 50 units value ₹2,200 2-12-2011 purchased 100 units ₹47 4-12-2011 issued 50 units 5-12-2011 purchased 200 units ₹48. The value of inventory at the end of the week and the unit weighted average costs is a)₹14,200-₹47.33 b)₹14,300-₹47.67 c)₹14,000-₹46.66 d)₹14,400-₹48.00 Correct Answer is (A).Please Explain? 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: 1-12-2011 opening inventory 50 units value ₹2,200 2-12-2011 purchased 100 units ₹47 4-12-2011 issued 50 units 5-12-2011 purchased 200 units ₹48. The value of inventory at the end of the week and the unit weighted average costs is a)₹14,200-₹47.33 b)₹14,300-₹47.67 c)₹14,000-₹46.66 d)₹14,400-₹48.00 Correct Answer is (A).Please Explain?.
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