Pillsbury Company\'s record of transactions concerning the month of September we
ID: 2460442 • Letter: P
Question
Pillsbury Company's record of transactions concerning the month of September were as follows: Compute the inventory at September 30 on each of the following bases. Assume that the company used the periodic method to report its inventory. Carry unit costs to the nearest cent. First-in, first-out (FIFO). Last-in, first-out (LIFO). Average cost. Repeat your calculations in (1), (2), and (3) above, under the assumption that the company used the perpetual method to report its inventory. Carry average unit costs to at least two decimal places.Explanation / Answer
FIFO
Receipts
Receipts
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Sep
Beg Inventory
300
12.00
3,600
300
12.00
3,600
3-Sep
Purchases
200
12.10
2,420
200
12.10
2,420
4-Sep
Sales
300
12.00
3,600
100
12.10
1,210
100
12.10
1,210
12-Sep
Purchases
300
12.25
3,675
300
12.25
3,675
16-Sep
Purchases
300
12.30
3,690
300
12.30
3,690
17-Sep
Sales
100
12.10
1,210
300
12.25
3,675
200
12.30
2,460
100
12.30
1,230
22-Sep
Purchases
500
12.30
6,150
500
12.30
6,150
26-Sep
Purchases
300
12.40
3,720
300
12.40
3,720
27-Sep
Sales
100
12.30
1,230
30-Sep
Sales
200
12.30
2,460
200
12.30
2,460
100
12.30
1,230
300
12.40
3,720
1,900
23,255
1,500
18,305
400
4,950
LIFO
Receipts
Receipts
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Sep
Beg Inventory
300
12.00
3,600
300
12.00
3,600
3-Sep
Purchases
200
12.10
2,420
200
12.10
2,420
4-Sep
Sales
200
12.10
2,420
200
12.00
2,400
100
12.00
1,200
12-Sep
Purchases
300
12.25
3,675
16-Sep
Purchases
300
12.30
3,690
17-Sep
Sales
300
12.30
3,690
300
12.25
3,675
100
12.00
1200
22-Sep
Purchases
500
12.30
6,150
26-Sep
Purchases
300
12.40
3,720
27-Sep
Sales
300
12.40
3,720
30-Sep
Sales
200
12.30
2,460
100
12.00
1200
300
12.30
3690
1,900
23,255
1,500
18,365
400
4890
Average Cost
Receipts
Receipts
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Sep
Beg Inventory
300
12.00
3,600
3-Sep
Purchases
200
12.10
2,420
500
12.05
6,025
4-Sep
Sales
400
12.05
4,820
100
12.05
1,205
12-Sep
Purchases
300
12.25
3,675
16-Sep
Purchases
300
12.30
3,690
700
12.20
8,540
17-Sep
Sales
600
12.20
7,320
100
12.20
1220
22-Sep
Purchases
500
12.30
6,150
900
12.30
11070
26-Sep
Purchases
300
12.40
3,720
27-Sep
Sales
300
12.30
3,690
30-Sep
Sales
200
12.30
2,460
400
12.30
4920
1,900
23,255
1,500
18,290
400
4920
FIFO
Receipts
Receipts
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Sep
Beg Inventory
300
12.00
3,600
300
12.00
3,600
3-Sep
Purchases
200
12.10
2,420
200
12.10
2,420
4-Sep
Sales
300
12.00
3,600
100
12.10
1,210
100
12.10
1,210
12-Sep
Purchases
300
12.25
3,675
300
12.25
3,675
16-Sep
Purchases
300
12.30
3,690
300
12.30
3,690
17-Sep
Sales
100
12.10
1,210
300
12.25
3,675
200
12.30
2,460
100
12.30
1,230
22-Sep
Purchases
500
12.30
6,150
500
12.30
6,150
26-Sep
Purchases
300
12.40
3,720
300
12.40
3,720
27-Sep
Sales
100
12.30
1,230
30-Sep
Sales
200
12.30
2,460
200
12.30
2,460
100
12.30
1,230
300
12.40
3,720
1,900
23,255
1,500
18,305
400
4,950