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 under (1) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 2 decimal places, e.g. 6,548.25.) Ending inventory $ eTextbook and Medial Save for Later (1) FIFO $ (2) LIFO $ (3) Average-cost Attempts: 0 of 11 used Submit Answer
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 under (1) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 2 decimal places, e.g. 6,548.25.) Ending inventory $ eTextbook and Medial Save for Later (1) FIFO $ (2) LIFO $ (3) Average-cost Attempts: 0 of 11 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please provide answer in text (Without image), please answer both part
![### Sheffield Company Transactions for Part WA6 - September
#### Purchases and Sales Data
**Purchases:**
- *September 1:* Balance on hand - 300 units @ $12.70
- *September 3:* Bought 200 units @ $12.80
- *September 12:* Bought 300 units @ $12.95
- *September 16:* Bought 200 units @ $13.00
- *September 26:* Bought 500 units @ $13.00
- *September 22:* Bought 300 units @ $13.10
**Sales:**
- *September 4:* Sold 400 units
- *September 17:* Sold 600 units
- *September 27:* Sold 300 units
- *September 30:* Sold 200 units
#### Weighted-Average Cost Calculation (a1)
Calculate the weighted-average cost per unit. When keeping perpetual inventory records in units only, the average cost of the units is $12.93 (rounded to two decimal places).
**Hint:** Use the formula for weighted-average cost:
\[
\text{Weighted-average cost per unit} = \frac{\text{Sum of (units purchased \times cost per unit)}}{\text{Total units purchased}}
\]
#### Inventory Valuation Methods (b)
Determine the ending inventory value using different methods, assuming costs are computed at withdrawal time:
1. **FIFO (First-In, First-Out):** Ending inventory calculated at $______
2. **LIFO (Last-In, First-Out):** Ending inventory calculated at $______
3. **Average-cost:** Ending inventory calculated at $______
*Note: Round average cost per unit to four decimal places and final answers to two decimal places.*
**Graph/Diagram Explanation:**
The data table above shows the sequential purchases and sales of inventory by Sheffield Company throughout September. The purchases section includes dates, quantity, and price per unit, while the sales section shows the dates and quantities sold. This information is vital for calculating inventory values using FIFO, LIFO, and average-cost methods.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4f4865a-ef7d-48b6-9e5b-0e85084b2d7c%2F2f9ce80a-f05d-4bc6-90da-87419b353d30%2Frrb7rle_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Sheffield Company Transactions for Part WA6 - September
#### Purchases and Sales Data
**Purchases:**
- *September 1:* Balance on hand - 300 units @ $12.70
- *September 3:* Bought 200 units @ $12.80
- *September 12:* Bought 300 units @ $12.95
- *September 16:* Bought 200 units @ $13.00
- *September 26:* Bought 500 units @ $13.00
- *September 22:* Bought 300 units @ $13.10
**Sales:**
- *September 4:* Sold 400 units
- *September 17:* Sold 600 units
- *September 27:* Sold 300 units
- *September 30:* Sold 200 units
#### Weighted-Average Cost Calculation (a1)
Calculate the weighted-average cost per unit. When keeping perpetual inventory records in units only, the average cost of the units is $12.93 (rounded to two decimal places).
**Hint:** Use the formula for weighted-average cost:
\[
\text{Weighted-average cost per unit} = \frac{\text{Sum of (units purchased \times cost per unit)}}{\text{Total units purchased}}
\]
#### Inventory Valuation Methods (b)
Determine the ending inventory value using different methods, assuming costs are computed at withdrawal time:
1. **FIFO (First-In, First-Out):** Ending inventory calculated at $______
2. **LIFO (Last-In, First-Out):** Ending inventory calculated at $______
3. **Average-cost:** Ending inventory calculated at $______
*Note: Round average cost per unit to four decimal places and final answers to two decimal places.*
**Graph/Diagram Explanation:**
The data table above shows the sequential purchases and sales of inventory by Sheffield Company throughout September. The purchases section includes dates, quantity, and price per unit, while the sales section shows the dates and quantities sold. This information is vital for calculating inventory values using FIFO, LIFO, and average-cost methods.
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