Pillsbury Company\'s record of transactions concerning the month of September we
ID: 2464117 • 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
Ans 1 Periodic System FIFO Units Cost Amt 300 12.4 3720 100 12.3 1230 Ending Inventory 4950 LIFO Units Cost Amt 300 12 3600 100 12.1 1210 Ending Inventory 4810 Average cost Rate uNits Ending Inventory Average Cost 23255/1900 12.24 400 4895.8 Ans 2 Perpetual Sysytem FIFO Method $ Purchases Cost of sales Balance Date Units Cost Total Date Units Cost Total Date Units Cost Sub Total Total Opening balance 300 12 3600 300 12 3600 3-Sep 200 12.1 2420 200 12.1 2420 0 500 6020 0 4-Sep 300 12 3600 4-Sep 100 12.1 1210 1210 100 12.1 1210 12-Sep 300 12.25 3675 12-Sep 100 12.1 1210 300 12.25 3675 400 4885 16-Sep 300 12.3 3690 100 12.1 1210 300 12.25 3675 300 12.3 3690 8575 17-Sep 100 12.1 300 12.25 200 12.3 7345 17-Sep 100 12.3 1230 1230 22-Sep 500 12.3 6150 22-Sep 100 12.3 1230 500 12.3 6150 7380 26-Sep 300 12.4 3720 300 12.4 3720 11100 27-Sep 100 12.3 27-Sep 300 12.3 3690 200 12.3 3690 300 12.4 3720 7410 0 30-Sep 200 12.3 2460 30-Sep 100 12.3 1230 300 12.4 3720 Ending Inventory Ans 400 4950 liFO Method $ Purchases Cost of sales Balance Date Units Cost Total Date Units Cost Total Date Units Cost Sub Total Total Opening balance 300 12 3600 300 12 3600 3-Sep 200 12.1 2420 200 12.1 2420 0 500 6020 0 4-Sep 200 12.1 2420 4-Sep 100 12 1200 1200 200 12 2400 12-Sep 300 12.25 3675 12-Sep 100 12 1200 300 12.25 3675 400 4875 16-Sep 300 12.3 3690 100 12 1200 300 12.25 3675 300 12.3 3690 8565 17-Sep 300 12.3 300 12.25 7365 17-Sep 100 12 1200 1200 22-Sep 500 12.3 6150 22-Sep 100 12 1200 500 12.3 6150 7350 26-Sep 300 12.4 3720 300 12.4 3720 11070 27-Sep 300 12.4 27-Sep 500 12.3 6150 3720 100 12 1200 7350 0 30-Sep 200 12.3 2460 30-Sep 100 12 1200 300 12.3 3690 Total 1900 23255 Ending Inventory Ans 400 4890 Average Cost $ Purchases Cost of sales Balance Date Units Cost Total Date Units Cost Total Date Units Cost Sub Total Total Opening balance 300 12 3600 300 12 3600 3-Sep 200 12.1 2420 200 12.1 2420 0 500 12.05 6020 6020 0 4-Sep 400 12.050 4820 4-Sep 100 12.05 1205 1205 12-Sep 300 12.25 3675 12-Sep 100 12.05 1205 300 12.25 3675 400 12.15 4880 4880 16-Sep 300 12.3 3690 400 12.15 4860 300 12.3 3690 700 12.225 8550 8550 17-Sep 600 12.225 7335 17-Sep 100 12.225 1222.5 1222.5 22-Sep 500 12.3 6150 22-Sep 100 12.225 1222.5 500 12.3 6150 600 12.2625 7372.5 7372.5 26-Sep 300 12.4 3720 300 12.4 3720 11092.5 600 12.2625 7372.5 900 12.331 11092.5 27-Sep 300 12.331 27-Sep 600 12.331 7398.6 3699.375 7398.6 0 30-Sep 200 12.331 2466.2 30-Sep 400 12.331 4932.4 Total 1900 23255 Ending Inventory Ans 400 4932.4