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) First- in , first-out (FIFO). 2) Last-in , first-out (LIFO 3) Average-cost
Bad Debts
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) First- in , first-out (FIFO).
2) Last-in , first-out (LIFO
3) Average-cost
Hull Company's for month of April
1) Inventory store ledger
(amount in $)
Using FIFO method
| Date | Particulars | Purchases | Issues | Balances | ||||||
| Units | Cost | Amount | Units | Cost | Amount | Units | Cost | Amount | ||
| April 1 | Opening balances | - | - | - | - | - | - | 100 | 5 | 500 |
| " 4 | Purchases | 400 | 5.10 | 2040 | - | - | - |
100 400 |
5 5.10 |
500 2040 |
| " 5 | Issued | - | - | - |
100 200 |
5 5.10 |
500 1020 |
200 |
5.10 |
1020 |
| " 11 | Purchases | 300 | 5.30 | 1590 |
- |
- |
- |
200 300 |
5.10 5.30 |
1020 1590 |
| " 12 | Issued | - | - | - |
200 |
5.10 |
1020 |
300 |
5.30 |
1590 |
| " 18 | Purchases | 200 | 5.35 | 1070 |
- |
- |
- |
300 200 |
5.30 5.35 |
1590 1070 |
| " 26 | Purchases | 600 | 5.60 | 3360 |
- |
- |
- |
300 200 600 |
5.30 5.35 5.60 |
1590 1070 3360 |
| " 27 | Issued |
- |
- |
- |
300 200 300 |
5.30 5.35 5.60 |
1590 1070 1680 |
300 |
5.60 |
1680 |
| " 28 | Issued |
- |
- |
- |
150 |
5.60 |
840 |
150 |
5.60 |
840 |
| " 30 | Purchases |
200 |
5.80 |
1160 |
- |
- |
- |
150 200 |
5.60 5.80 |
840 1160 |
| " 30 | Closing balances |
- |
- |
- |
- |
- |
- |
150 200 |
5.60 5.80 |
840 1160 |
Closing inventory = $840 + 1160
= $2000
Hence, Closing inventory value = $2000.
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