Purchases   Sales April     1 (balance on hand)   440  @  $7.50   April     5   640 4     740  @  7.70   12   540 11     640  @  8.00   27   1,480 18     540  @  8.00   28   150 26     940  @  8.40         30     540  @  8.70

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Novak Company’s record of transactions concerning part X for the month of April was as follows.

Purchases
 
Sales
April     1 (balance on hand)   440  @  $7.50   April     5   640
4     740  @  7.70   12   540
11     640  @  8.00   27   1,480
18     540  @  8.00   28   150
26     940  @  8.40        
30     540  @  8.70        

(a1)

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Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 4 decimal places, e.g. 2.7682.)

Average-cost per unit  
$
 

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Attempts: 3 of 3 used
 
 
 

(a2)

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  • Correct Answer (Used)

Partially correct answer iconYour answer is partially correct.

Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.)

   
(1)
FIFO
 
(2)
LIFO
 
(3)
Average-cost
Ending Inventory  
$
 
$
 
$
 

eTextbook and Media

Solution

 
 
 
 
Attempts: 3 of 3 used
 
 
 

(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 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 0 decimal places, e.g. 6,548.)

   
(1)
FIFO
 
(2)
LIFO
 
(3)
Average-cost
Ending Inventory  
$
 
$
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