Question

Exercise 8-11 Sheffield Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 1,260 @ $6.00 April 3 1,050 @ $10.00 4 3,150 @ 6.08 9 2,940 @ 10.00 8 1,680 @ 6.40 11 1,260 @ 11.00 13 2,520 @ 6.50 23 2,520 @ 11.00 21 1,470 @ 6.60 27 1,890 @ 12.00 29 1,050 @ 6.79 9,660 11,130

Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit $ per unit LINK TO TEXT

Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using LIFO and average-cost. (Round answer to 0 decimal places, e.g. 2,760.) LIFO $ Average-cost $ LINK TO TEXT

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 $ $ LINK TO TEXT

Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.) Cost of goods sold $ LINK TO TEXT

In an inflationary period, which inventory method—FIFO, LIFO, average-cost—will show the highest net income?     Average-cost    FIFO    LIFO     inventory method will show the highest net income.

Answer 1

shefield company's ecoad 07 F6.35 Average cost Pes ontf EXPlantion: APril 1 1260 X $6 19152 4 31SO X 608 1680 6 6.40 16380 3 2520 S6.50 702 1470 6.60 2 1 7129.5 29 F679 1050 11130 $ F0675s cost Pes onit 1130 AVg S 6.3S PesUnit (2ending Inventony 13FO F8837 Average cost 35 EXPlanatHOn 0lendiy inventory Units 1L130-906o T.14900n1 LIFO APril 1260 x 6 A Pril 4 2 10 X608 = 1276.8 1470

F 9935 6.35X 1470 Unit AVe9e cost= (3) Pespeta Invento cords FIFO LIFO 9 666 F9902 Inventony FIFO F129.S APril 29 6.79 420 X 6-60 APail 21 2772 1470 Unft (R) LIFO APril 210 Unit X 6 1 $ 1260 6.080 APril 2 10 Unit 1236.8 F129.5 29 $6.79 roso Uni 1470 0nit F9669 4FIFO COst Of G0od sold FIFO Endia9 Invento COSTOF GI00 ds available for sale 70675.5 9902 60114 (5FIFO shous the highest met Income