*E8.18 (LO3, 5) (FIFO, LIFO, and Average-Cost Determination) Keyser Company's record of transactions for the month of April is as follows. Purchases Sales April 1 (balance on hand) 600 @ $6.00 April 3 500 @$10.00 4 8 1,500 @6.08 9 1,300 @ 10.00 800 @ 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 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?
*E8.18 (LO3, 5) (FIFO, LIFO, and Average-Cost Determination) Keyser Company's record of transactions for the month of April is as follows. Purchases Sales April 1 (balance on hand) 600 @ $6.00 April 3 500 @$10.00 4 8 1,500 @6.08 9 1,300 @ 10.00 800 @ 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 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:*E8.18 (LO3, 5) (FIFO, LIFO, and Average-Cost Determination) Keyser
Company's record of transactions for the month of April is as follows.
Purchases
Sales
April 1 (balance on hand)
600 @ $6.00 April 3
500 @$10.00
4
8
1,500 @6.08
9
1,300 @ 10.00
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
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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