Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Problem 8-5 Received Date No. of Units Unit Cost Issued, No. of Units Balance, N

ID: 2603840 • Letter: P

Question

Problem 8-5

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

LINK TO TEXT

LINK TO TEXT

(1)
FIFO.   

( 2)
LIFO

(3)
Average-cost

LINK TO TEXT

LINK TO TEXT

(1)
FIFO

(2)
LIFO   

(3)
Average-cost

LINK TO TEXT

LINK TO TEXT

SAVE FOR LATER

SUBMIT ANSWER

Problem 8-5

Some of the information found on a detail inventory card for Culver Inc. for the first month of operations is as follows.
ANSWER 1, 2 AND 3

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

January 2 1,600 $5.10 1,600 7 1,100 500 10 1,000 5.44 1,500 13 900 600 18 1,400 5.61 700 1,300 20 1,100 200 23 1,700 5.78 1,900 26 1,200 700 28 2,000 5.95 2,700 31 1,700 1,000 Your answer is incorrect. Try again. 1. Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Average-cost per unit $

LINK TO TEXT

LINK TO TEXT

Your answer is incorrect. Try again. From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.)
2.

(1)
FIFO.   

( 2)
LIFO

(3)
Average-cost

Ending Inventory $

$

$

LINK TO TEXT

LINK TO TEXT

Your answer is partially correct. Try again. If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)
3.

(1)
FIFO

(2)
LIFO   

(3)
Average-cost

Ending Inventory $

$

$

LINK TO TEXT

LINK TO TEXT

Question Attempts: 1 of 3 used

SAVE FOR LATER

SUBMIT ANSWER

Explanation / Answer

1. Average cost per unit

A. 2 January = $ 5.10

B 7 January =. $ 5.10

C 10 January =.   1000×$5.44 + 500×$5.10. $ 5.33

1500

D 13 January = $ 5.33

E 18 January= (1400×$5.61+600×$5.33)-700×$5.33  $5.53

1300

F 20 January =. $ 5.53

G 23 January= 1700×$5.78+200×$5.53.   $5.75

H 26 January $ 5.75

I 28 January = 2000×$5.95+700×$5.75    $5.90

. 2700

K 31 January = $5.90

2 calculation of closing inventory.

a) FIFO BASIS = 1000 UNITS WILL BE PURCHASE ON 28 JANUARY

b) LIFO BASIS= 1000 UNITS WILL BE PURCHASE ON 200 unit 2 January , 500 unit 23 January ,300 unit 28 January.

C) average cost basis= 1000 units will be purchase on 28 January

3 calculation of cost of inventory

1) FIFO BASIS= 1000×$5.95 $5950

2) LIFO BASIS= 200×$5.10+500×$5.78+300×5.95 $5895

3) Average cost basis = 1000× $5.90. $ 5900