Question

Dice LLC has presented below the acquisition and issuance details of material D 1 which it purchases regularly in production: May 2020: Units Rate per unit 01 Opening balance 3,000 0.200 04 Purchase 5,000 0.300 05 Issuance 6,000 07 Purchase 4,000 0.400 09 Purchase 3.000 0.300 12 Issuance 1,500 14 Issuance 2,500 18 Issuance 3,000 20 Purchase 8,000 0.200 21 Issuance 7,000 23 Purchase 2,000 0.600 24 Purchases 6,000 0.500 26 Issuance 7,000 27 Purchase 1,000 0.700 29 Issuance 1,500 Required: You are required to prepare the stores ledger account using Weighted Average method.

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-May							3000	0.2	600
04-May	5000	0.3	1500				3000	0.2	600
							5000	0.3	1500
AVERAGE							8000	0.2625	2100
05-May				6000	0.2625	1575	2000	0.2625	525
07-May	4000	0.4	1600				2000	0.2625	525
							4000	0.4	1600
Average							6000	0.3542	2125
09-May	3000	0.3	900				6000	0.3542	2125
							3000	0.3	900
Average							9000	0.3361	3025
12-May				1500	0.3361	504	7500	0.3361	2521
14-May				2500	0.3361	840	5000	0.3361	1681
18-May				3000	0.3361	1008	2000	0.3361	673
20-May	8000	0.2	1600				2000	0.3361	673
							8000	0.2	1600
average							10000	0.2273	2273
21-May				7000	0.2273	1591	3000	0.2273	682
23-May	2000	0.6	1200				3000	0.2273	682
							2000	0.6	1200
Average							5000	0.3764	1882
24-May	6000	0.5	3000				5000	0.3764	1882
							6000	0.5	3000
Average							11000	0.4438	4882
26-May				7000	0.4438	3107	4000	0.4438	1775
27-May	1000	0.7	700				4000	0.4438	1775
							1000	0.7	700
Average							5000	0.495	2475
29-May				1500	0.495	743	3500	0.495	1732
TOTAL	29000		10500	38500		9368	3500	0.495	1732