Question

BLANK Company’s record of transactions for the month of April was as follows.

Purchases							Sales
April 1	(balance on hand)		708	@	$5.00		April 3		590	@	$10.00
4			1,770	@	5.09		9		1,652	@	10.00
8			944	@	5.38		11		708	@	11.00
13			1,416	@	5.48		23		1,416	@	11.00
21			826	@	5.68		27		1,062	@	12.00
29			590	@	5.87				5,428
			6,254

Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (Round answer to 0 decimal places, e.g. 2,760.)

		(1) FIFO		(2) LIFO
Inventory		$

Answer 1

		FIFO Method
		Qty	Rate	Value
01/04	Opening	708	5	3,540.00
03/04	Sales	-                 590	10	- 5,900.00
	Balance	118	5	590.00
04/04	Purchases	1,770	5.09	9,009.30
08/04	Purchases	944	5.38	5,078.72
09/04	Sales	-                 118	5	-    590.00
	Sales	-              1,534	5.09	- 7,808.06
	Balance	1,180	5.09	6,006.20
11/04	Sales	-                 236	5	- 1,201.24
	Sales	-                 472	5.38	- 2,539.36
	Balance	472	5.38	2,539.36
13/04	Purchases	1,416	5.48	7,759.68
21/04	Purchases	826	6	4,691.68
23/04	Sales	-                 472	5.38	- 2,539.36
		-                 944	5.48	- 5,173.12
	Balance	472	5.48	2,586.56
	Balance	826	6	4,691.68
27/04	Sales	-                 472	5.48	- 2,586.56
		-                 590	6.00	- 3,540.00
29/04	Purchases	590	5.87	3,463.30
	Balance	236	6.00	1,416.00
		826		4.879.30
		LIFO Method
		Qty	Rate	Value
01/04	Opening	708	5.00	3,540.00
03/04	Sales	-                 590	10.00	- 5,900.00
	Balance	118	5.00	590.00
04/04	Purchases	1,770	5.09	9,009.30
08/04	Purchases	944	5.38	5,078.72
09/04	Sales	-                 944	5.38	- 5,078.72
	Sales	-                 708	5.09	- 3,603.72
	Balance	1,062	5.09	5,405.58
	Balance	118	5	590.00
11/04	Sales	-                 708	5.09	- 3,603.72
	Balance	118	5	590.00
	Balance	354	5.09	1,801.86
13/04	Purchases	1416	5.48	7,759.68
21/04	Purchases	826	5.68	4,691.68
23/04	Sales	-                 826	5.68	- 4,691.68
		-                 590	5.48	- 3,233.20
	Balance	826	5.48	4,526.48
	Balance	354	5.09	1,801.86
	Balance	118	5	590.00
27/04	Sales	-                 826	5.48	- 4,526.48
	Sales	-                 236	5.09	- 1,201.24
	Balance	118	5.09	600.62
	Balance	118	5	590.00
29/04	Purchases	590	5.87	3,463.30
		826		4,653.92

FIFO - $ 4,879.30

LIFO - $ 4,653.92