WEIGHTED AVERAGE METHOD:- Date Issues Balance Qty Pice Value Otr Price Value Qty

Question

WEIGHTED AVERAGE METHOD:- Date Issues Balance Qty Pice Value Otr Price Value Qty Price Value 20 2.00 40.00 20 2.00 40.00 Feb 5 2.00 10.00 15 2.00 30.00 Mar 5 220 11.00 20 205 41.00 15 205 30.75 205 10.25 Apr 10 2.50 25.00 15 2.35 35 25 Jun 4 2.35 9.40 11 2.35 25.85 Aug 26 249 64.74 Sep 15 2.60 39.00 5 249 12.4 21 2.49 52.20 10 249 24.90 11 250 27.39 3 2.50 7.508 2.50 19.92 42 94.97 Oct Now Dec The unit prices in the issues and balances columns are weighted averages. With this method, the Gross profit calculation would be:-

Explanation / Answer

The question does not specify as to what is to be done. As far as stores ledger (inventory valuation) and calculation of gross profit is concerned, both of these are absolutely correct.

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