1.Calculate average-cost per unit.2. 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.3. 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? (1)FIFO (2)LIFO (3)Average-costWould amount be same No/Yes? No/Yes? Yes/No?Ending Inventory $ $ $ Some of the information found on a detail inventory card for Pharoah Inc. for the first month of operations is as follows.ReceivedIssued,No. of UnitSBalance,No. of UnitsDateNo. of UnitsUnit CostJanuary 21,500$4.561,50071,000500109004.861,40013800600181,3005.026001,300201,100200231,6005.171,800261,100700281,9005.322,600311,6001,000Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)Average-cost per unitFrom 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 answersto 0 decimal places, e.g. 6,548.)(1)FIFO(2)LIFO(3)Average-costEnding Inventory$4$1If 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 endinginventory? (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)(2)(3)Average-costFIFOLIFOWould amount be sameEnding Inventory$4$

Average Cost per Unit - Formula Total Cost of Purchase Unit / Number of units Total Cost of Purchase…

Answered: 1.Calculate average-cost per unit. 2.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1.Calculate average-cost per unit.

2. 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.

3. 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?

	(1) FIFO	(2) LIFO	(3) Average-cost
Would amount be same	No/Yes?	No/Yes?	Yes/No?
Ending Inventory	$	$	$

Some of the information found on a detail inventory card for Pharoah Inc. for the first month of operations is as follows.
Received
Issued,
No. of UnitS
Balance,
No. of Units
Date
No. of Units
Unit Cost
January 2
1,500
$4.56
1,500
7
1,000
500
10
900
4.86
1,400
13
800
600
18
1,300
5.02
600
1,300
20
1,100
200
23
1,600
5.17
1,800
26
1,100
700
28
1,900
5.32
2,600
31
1,600
1,000
Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Average-cost per unit
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.)
(1)
FIFO
(2)
LIFO
(3)
Average-cost
Ending Inventory
$4
$1
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.)
(1)
(2)
(3)
Average-cost
FIFO
LIFO
Would amount be same
Ending Inventory
$4
$

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