Weighted Average – NBC Institute

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

Question

A company located in Ijora area of Lagos extracted the following figures from its materials analysis sheet:

Date	Transaction	Quantity	Unit price (N)
1st January	Balance b/f	10,000	50
25th January	Receipt	7,000	55
6th February	Issue	14,000	–
3rd March	Receipt	5,000	60
27th March	Receipt	4,500	62
4th June	Issue	7,500	–
24th June	Issue	2,500	–
30th June	Receipt	6,500	65

You are required to record the above transactions in the inventory ledger and determine the value of the inventory balance at the end of June 2015 using:
a. First-in-First-out pricing method. (10 Marks)
b. Weighted average pricing method. (10 Marks)

(Total 20 Marks)

Answer

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Tags: Cost Accounting, FIFO, Inventory Management, Inventory Valuation, Material Analysis, Pricing methods, Weighted Average
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2015

FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2

Determine the cost per unit of closing inventory using the weighted average cost method.

Question

Using the Weighted Average Cost method, what is the cost per unit of the closing inventory after the company issued 500 units?

A. N82.50
B. N83.75
C. N85.00
D. N86.25
E. N87.50

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Method, Inventory, Weighted Average
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: NOV 2023

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

Question

A company located in Ijora area of Lagos extracted the following figures from its materials analysis sheet:

Date	Transaction	Quantity	Unit price (N)
1st January	Balance b/f	10,000	50
25th January	Receipt	7,000	55
6th February	Issue	14,000	–
3rd March	Receipt	5,000	60
27th March	Receipt	4,500	62
4th June	Issue	7,500	–
24th June	Issue	2,500	–
30th June	Receipt	6,500	65

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, FIFO, Inventory Management, Inventory Valuation, Material Analysis, Pricing methods, Weighted Average
Level: Level 1

Topic: Accounting for Cost Elements
Series: NOV 2015

FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2

Determine the cost per unit of closing inventory using the weighted average cost method.

Question

Using the Weighted Average Cost method, what is the cost per unit of the closing inventory after the company issued 500 units?

A. N82.50
B. N83.75
C. N85.00
D. N86.25
E. N87.50

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Method, Inventory, Weighted Average
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: NOV 2023

Question Tag: Weighted Average

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MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2

Determine the cost per unit of closing inventory using the weighted average cost method.

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2

Determine the cost per unit of closing inventory using the weighted average cost method.

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Question Tag: Weighted Average

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MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

You're reporting an error for "MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements"

FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2

Determine the cost per unit of closing inventory using the weighted average cost method.

You're reporting an error for "FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2"

MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements

Determines inventory balance using FIFO and weighted average pricing methods.

You're reporting an error for "MI – Nov 2015 – L1 – SB – Q3 – Accounting for Cost Elements"

FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2

Determine the cost per unit of closing inventory using the weighted average cost method.

You're reporting an error for "FA – Nov 2023 – L1 – SA – Q8 -Accounting for Inventories in Accordance with IAS 2"

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