Comute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units onlt. Carry unit costs to the nearest cent . 1)FIFO) 2)LIFO2 3)Average cost
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
P8-4 (Comute FIFO , LIFO , and Average-Cost)
Hull Company's record of transactions concering part X for the month of April was as follows.
| Purchases | Sales | |
| April 1 (balance on hand) | 100 @ $5.00 | April 5 300 |
| 4 | 400 @ 5.10 | 12 200 |
| 11 | 300 @ 5.30 | 27 800 |
| 18 | 200 @ 5.35 | 28 150 |
| 26 | 600 @ 5.60 | |
| 30 | 200 @ 5.80 |
Comute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units onlt. Carry unit costs to the nearest cent .
1)FIFO)
2)LIFO2
3)Average cost
B) 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 in (1) , (2), (3) above ? (Carry average unit costs to four decimal places.).
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