Help required on as2

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50 Points Posted on 09 December 2012

Hi Guys Pls help me to solve this prob....

Amar hold an inventory of Spare Parts which he value on perodic weighted average basis. Dering the year 2006 his purchases of part was

January--->400 units --->CPU Rs 20

June--->500 units --->CPU Rs 22

September--->300 units --->CPU Rs 24

At 31s sep 2006 he had 300 units in inventory. on 01.01.2006 he had no parts in inventory. The value of onventory of parts at 31.12.2006 is --

1) Rs 6600

2) Rs 6000

3) Rs 7200

4) Rs 6550

Pls solve this according to the provisions in AS2. Ans will be 4) Rs 6550.

Replies (3)

!..Live to Give..!

16532 Points Posted on 09 December 2012

Hey brother its easy....Let's Solve...

See here total purchase is 1200 Units.....

And total payment is 8000(400*20) + 11000(500*22) + 7200(300*24) = 26200

As Amar using Weighted average Price Method, the Weighted average Price is

= 26200/1200 Units = 21.8333 per Unit

At the end of year We have closing stock of 300 Units

So the Value of Closing Stock is = 300 Units * 21.8333 per Unit = Rs. 6550.

Hope you got it.....

Chartered Accountant....

9787 Points Posted on 09 December 2012

Originally posted by : !..SaNKeT..!
	Hey brother its easy....Let's Solve... See here total purchase is 1200 Units..... And total payment is 8000(40020) + 11000(50022) + 7200(30024) = 26200 As Amar using Weighted average Price Method, the Weighted average Price is = 26200/1200 Units = 21.8333 per Unit At the end of year We have closing stock of 300 Units So the Value of Closing Stock is = 300 Units 21.8333 per Unit = Rs. 6550. Hope you got it.....