LoBianco Company's record of transactions for the month of April was as follows. 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 Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) FIFO and (2) average-cost. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost. In an inflationary period, which inventory method - FIFO or average-cost - will show the highest net income
LoBianco Company's record of transactions for the month of April was as follows. 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 Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) FIFO and (2) average-cost. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost. In an inflationary period, which inventory method - FIFO or average-cost - will show the highest net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
LoBianco Company's record of transactions for the month of April was as follows.
|
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 |
Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) FIFO and (2) average-cost.
Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost.
In an inflationary period, which inventory method - FIFO or average-cost - will show the highest net income?
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