If the perpetual inventory record is kept in dollars, and costs are computed at
ID: 2575361 • Letter: I
Question
If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)
(1)
FIFO
(2)
LIFO
(3)
Average-cost
Cullumber Company’s record of transactions concerning part X for the month of April was as follows.
Purchases
Sales
(1)
FIFO
(2)
LIFO
(3)
Average-cost
Explanation / Answer
Purchases
1-Apr
(balance on hand)
420
$7.30
Sales
4
720
7.45
5-Apr
11
620
7.74
12
18
520
7.81
27
26
920
8.18
28
30
520
8.47
@
FIFO method
1-Apr
balance
420
7.3
3066
4-Apr
purchase
720
7.45
5364
Balance
1140
8430
5-Apr
sales
620
(420*7.3+200*7.45
4556
balance
520
7.45
3874
11-Apr
purchase
620
7.74
4798.8
balance
1140
8672.8
12-Apr
sales
520
520*7.45
3874
balance
620
620*7.74
4798.8
18-Apr
purchase
520
7.81
4061.2
balance
1140
520*7.81+620*7.74
8860
26-Apr
purchase
920
8.18
7525.6
balance
2060
520*7.81 +620*7.74 + 920*8.18
16385.6
27-Apr
sales
1440
520*7.81 +620*7.74 + 300*8.18
11314
balance
620
620*8.18
5071.6
28-Apr
sales
150
8.18
1227
balance
470
8.18
3844.6
30-Apr
purchase
520
8.47
4404.4
30-Apr
month end balance in inventory
990
8249
LIFO method
1-Apr
balance
420
7.3
3066
4-Apr
purchase
720
7.45
5364
Balance
1140
8430
5-Apr
sales
620
7.45
4619
balance
520
100*7.45+420*7.3
3811
11-Apr
purchase
620
7.74
4798.8
balance
1140
620*7.74+100*7.45+420*7.3
8609.8
12-Apr
sales
520
7.74
4024.8
balance
620
100*7.74+100*7.45+420*7.3
4585
18-Apr
purchase
520
7.81
4061.2
balance
1140
520*7.81+100*7.74+100*7.45+420*7.3
8646.2
26-Apr
purchase
920
8.18
7525.6
balance
2060
920*8.18+520*7.81+100*7.74+100*7.45+420*7.3
16171.8
27-Apr
sales
1440
920*8.18+520*7.81
11586.8
balance
620
100*7.74+100*7.45+420*7.3
4585
28-Apr
sales
150
100*7.74+50*7.45
1146.5
balance
470
50*7.45+420*7.3
3438.5
30-Apr
purchase
520
8.47
4404.4
30-Apr
month end balance in inventory
990
520*8.47+50*7.45+420*7.3
7842.9
Average cost method
1-Apr
420
@
$7.30
$3,066.00
4
720
@
7.45
$5,364.00
11
620
@
7.74
$4,798.80
18
520
@
7.81
$4,061.20
26
920
@
8.18
$7,525.60
30
520
@
8.47
$4,404.40
value of inventory
$29,220.00
no of units
3720
3720
average cost per unit
$7.85
No of units in year end inventory
3720-2730
990
cost of year end inventory
990*7.85
7771.5
Purchases
1-Apr
(balance on hand)
420
$7.30
Sales
4
720
7.45
5-Apr
11
620
7.74
12
18
520
7.81
27
26
920
8.18
28
30
520
8.47
@
FIFO method
1-Apr
balance
420
7.3
3066
4-Apr
purchase
720
7.45
5364
Balance
1140
8430
5-Apr
sales
620
(420*7.3+200*7.45
4556
balance
520
7.45
3874
11-Apr
purchase
620
7.74
4798.8
balance
1140
8672.8
12-Apr
sales
520
520*7.45
3874
balance
620
620*7.74
4798.8
18-Apr
purchase
520
7.81
4061.2
balance
1140
520*7.81+620*7.74
8860
26-Apr
purchase
920
8.18
7525.6
balance
2060
520*7.81 +620*7.74 + 920*8.18
16385.6
27-Apr
sales
1440
520*7.81 +620*7.74 + 300*8.18
11314
balance
620
620*8.18
5071.6
28-Apr
sales
150
8.18
1227
balance
470
8.18
3844.6
30-Apr
purchase
520
8.47
4404.4
30-Apr
month end balance in inventory
990
8249
LIFO method
1-Apr
balance
420
7.3
3066
4-Apr
purchase
720
7.45
5364
Balance
1140
8430
5-Apr
sales
620
7.45
4619
balance
520
100*7.45+420*7.3
3811
11-Apr
purchase
620
7.74
4798.8
balance
1140
620*7.74+100*7.45+420*7.3
8609.8
12-Apr
sales
520
7.74
4024.8
balance
620
100*7.74+100*7.45+420*7.3
4585
18-Apr
purchase
520
7.81
4061.2
balance
1140
520*7.81+100*7.74+100*7.45+420*7.3
8646.2
26-Apr
purchase
920
8.18
7525.6
balance
2060
920*8.18+520*7.81+100*7.74+100*7.45+420*7.3
16171.8
27-Apr
sales
1440
920*8.18+520*7.81
11586.8
balance
620
100*7.74+100*7.45+420*7.3
4585
28-Apr
sales
150
100*7.74+50*7.45
1146.5
balance
470
50*7.45+420*7.3
3438.5
30-Apr
purchase
520
8.47
4404.4
30-Apr
month end balance in inventory
990
520*8.47+50*7.45+420*7.3
7842.9
Average cost method
1-Apr
420
@
$7.30
$3,066.00
4
720
@
7.45
$5,364.00
11
620
@
7.74
$4,798.80
18
520
@
7.81
$4,061.20
26
920
@
8.18
$7,525.60
30
520
@
8.47
$4,404.40
value of inventory
$29,220.00
no of units
3720
3720
average cost per unit
$7.85
No of units in year end inventory
3720-2730
990
cost of year end inventory
990*7.85
7771.5