Chapter 8, Problem 5P

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products which are held with the purpose of sale.

Given: Some of the information found on a detail inventory card for S Inc. for the first month of operations is presented in the question.

• (a)

To compute: The ending inventory on each of the following bases, assuming that perpetual inventory records are kept in units only (Carry unit costs to the nearest cent and ending inventory to the nearest dollar).

(1) First-in first-out (FIFO).

(2) Last-in first-out (LIFO).

(3) Average-cost.

To determine

• (b)

To explain: Ending inventory under perpetual system.