ACC2232 - Inventory Valuation

Try this....

Puteri trading company involved in the marketing of computer gadgets using “Nabilla” as the brand name. Samihah is a trained accountant was called to advise the management which method should the company adopt for inventory valuation. The following information regarding the inventory valuation for the month of August 2017 is as below.

• Aug. 01: Beginning inventory, 600 units @ RM5 each each.
• Aug. 10: Sold 400 units @ RM12 each.
• Aug. 11: Purchased 1,600 units @ RM6 each.
• Aug. 15: Sold 1,000 units @ RM12.50 each.
• Aug. 20: Purchased 1,000 units @ RM6.50 each.
• Aug. 27: Sold 600 units @ RM13.50 each.

Puteri had decided to apply the two inventory valuation method, that are First-in-First-Out (FIFO) and Weighted Average (WA).