Question

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 1,7705.09 9 1,652 10.00 944m 5.38 11 708 11.00 1,416 5.48 23 1,416 11.00 8265.68 27 1,062 12.00 590 5.87 5.42 6,254 Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using UFO and average-cost. (Round answer UFO Average cous

Answer 1

Periodic Method LIFO Method: Date Purchases Less : Sales Ending Inventory Units 6254 -5428 826 Activity 01-Apr Beginning Inventory 04-Apr purchase 08-Apr purchase 13-Apr purchase 21-Apr purchase 29-Apr purchase No of units Unit cost Total Cost 708 $ 5.00 S 3,540.00 1770 $ 5.09 S 9,009.30 944 $ 5.38 $ 5,078.72 1416 $ 5.48 S 7,759.68 826 $ 5.68 S 4,691.68 590 $ 5.87 S 3,463.30 Cost of goods available for sale $ 33,542.68 Ending Inventory 826 units : 708 units @ $5 126 units @ $5.09 3,540 641 Cost of Ending Inventory 4,181 Note : LIFO Method assumes that goods which are purchased last will be sold first SO. Ending inventory consists of units which are purchased first (Rounded off to 0 Decimals)

Periodic Method Avg Cost Method : Date Purchases Less : Sales Ending Inventory Units 6254 -5428 826 Activity 01-Apr Beginning Inventory 04-Apr purchase 08-Apr purchase 13-Apr purchase 21-Apr purchase 29-Apr purchase No of units Unit cost Total Cost 708 $ 5.00 S 3,540.00 1770 $ 5.09 S 9,009.30 944 $ 5.38 $ 5,078.72 1416 $ 5.48 S 7,759.68 826 $ 5.68 S 4,691.68 590 $ 5.87 S 3,463.30 $ 33,542.68 5.36 Cost of goods available for sale Average Cost per unit - 33542.68/6254 (Rounded off to 2 Decimals) Ending Inventory 826 units : 826 units @ $5.36 4,427 Cost of Ending Inventory 4,427 Note : Avg cost method assumes that goods are sold at avg cost per unit Therefore, Ending inventory will also be valued at avg cost per unit (Rounded off to 0 Decimals)