Question

Problem 8-04 Sunland Company's record of transactions concerning part X for the month of April was as follows. Purchases 1 (balance on hand) April April 320 @ $6.30 620 @ 6.40 520 @ 6.70 420 @ 6.70 820 @ 7.10 420 7.30 Sales 5 520 12 420 27 1,240 29 150 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 units LINK TO TEXT 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 O decimal places, c.g. 6,548.) (1) FIFO (2) e po p LIFO o (3) Average-cost Average-cost Ending Inventory LINK TO TEXT 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-cast? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to o decimal places, e.g. 6,548.) (1) (2) (3) Average-cost Ending Inventory s Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

Answer 1

Purchases Units Cost Date-April Units Cost Per Unit 1 320 6.3 2016 4 620 6.4 3968 11 520 6.7 3484 18 420 6.7 2814 26 820 7.1 5822 30 420 7.3 3066 Total 3120 21170 Average Cost per unit 21170 3120 Average Cost per unit 6.7853

FIFO Sale End Inventory Purchases Date- April Units Cost Unit Cost Unit Cost 6.3 1 320 4 620 6.4 5 320 6.3 200 6.4 6.4 420 6.7 11 520 12 420 6.4 520 6.7 18 420 6.7 26 820 7.1 27 520 6.7 420 6.7 300 7.1 520 7.1 28 150 7.1 370 7.1 30 420 7.3 Cost per Units unit Amount Therefore End inventory 370 7.1 2627 3066 420 7.3 Total 790 5693

LIFO End Inventory Purchases Sale Date April Cost Units Cost Unit Unit Cost 320 6.3 4 620 6.4 320 6.3 5 520 6.4 100 6.4 11 520 6.7 320 6.3 12 420 6.7 100 6.4 100 6.7 18 420 6.7 820 26 7.1 820 7.1 320 6.3 27 100 6.4 420 6.7 6.7 100 100 6.7 6.3 320 28 50 6.4 50 6.4 30 420 7.3 Cost Units per Therefore End inventory 320 6.3 Amount 50 6.4 2016 420 7.3 320 3066 Total 790 5402

Average Cost End Inventory Purchases Sale Date-April Units Total Cost Unit Unit Cost Amount Cost Cost 2016 320 6.3 3968 4 620 6.4 Total 940 5984 940 6.366 5984.04 520 420 6.366 6.366 2673.72 11 520 6.7 520 6.7 3484 Total 940 6.5508 6157.72 520 12 420 6.5508 6.5508 3406.42 18 420 6.7 420 6.7 2814 820 820 5822 26 7.1 7.1 Total 1760 6.8423 12042.4 3558 27 1240 6.8423 520 6.8423 370 150 6.8423 6.8423 28 2531.65 3066 30 420 7.3 420 7.3 790 Total 7.0856 5597.65 Cost per unit Units Amount Therefore End inventory 790 7.0856 5598