April 1 (balance on hand) 600 @ $6.00 April 3 500 @ $10.00 4 1,500 @ 6.08 9 1,300 @ 10.00 8 800 @ 6.40 11 600 @ 11.00 13 1,200 @ 6.50 23 1,200 @ 11.00 21 700 @ 6.60 27 900 @ 12.00 29 500 @ 6.79 4,500 5,300 Instructions a. Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) LIFO and (2) average-cost. b. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) LIFO. c. Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
April 1 (balance on hand) 600 @ $6.00 April 3 500 @ $10.00 4 1,500 @ 6.08 9 1,300 @ 10.00 8 800 @ 6.40 11 600 @ 11.00 13 1,200 @ 6.50 23 1,200 @ 11.00 21 700 @ 6.60 27 900 @ 12.00 29 500 @ 6.79 4,500 5,300 Instructions a. Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) LIFO and (2) average-cost. b. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) LIFO. c. Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Purchases | Sales | ||||||||
| April | 1 (balance on hand) | 600 | @ | $6.00 | April | 3 | 500 | @ | $10.00 |
| 4 | 1,500 | @ | 6.08 | 9 | 1,300 | @ | 10.00 | ||
| 8 | 800 | @ | 6.40 | 11 | 600 | @ | 11.00 | ||
| 13 | 1,200 | @ | 6.50 | 23 | 1,200 | @ | 11.00 | ||
| 21 | 700 | @ | 6.60 | 27 | 900 | @ | 12.00 | ||
| 29 | 500 | @ | 6.79 | 4,500 | |||||
| 5,300 |
Instructions
a. Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) LIFO and (2) average-cost.
b. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) LIFO.
c. Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
d. In an inflationary period, which inventory method—FIFO, LIFO, or average-cost—will show the highest net income?
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