Question

Current Attempt in Progress Waterway Company's record of transactions for the month of April was as follows. Purchases April 1 balance on hand) 1,380 @ $6.00 3,450 608 1.840 6.40 2,760 6.50 1610 @ 6.60 1.150 6.79 12.190 Sales April 3 1.150 $10.00 9 220 1000 11 1,300 11.00 232.760 @ 11.00 27 2.070 12.00 10.580 Assuming that periodic inventory records are kept in units only. calculate the average cost per unit. (Round answer to 2 decimal places 2.760 Average-cost per unit $ per unit Assuming that periodic Inventory records are kept in units only compute the inventory M Apr 30 using LIFO and average cost. Round answer to decimal places 2.760J LIFO Average cost $ Assuming that perpetual inventory records we kept in dollars, determine the inventory using (1) FIFO and (2) LIFO Round answer to decimal places, 2760 FIFO Inventory S Compute cost of goods sold assumine periodic inventory procedures and inventory priced FIFO. Round answer to decimal places. 2760 Cost of goods sold 5 In an inflationary period, which inventory method-FO, UFO, -cost-will show the highest reincome inventory method will show the highest net income

Answer 1

The explanations to the above mentioned questions is below in form of images :

Waterway Company's for the month record of of April transactions Purchases Units @ $ Amount April 1 Jol (balance on hand) 1,380 @ $6.00 $8,280 3,450 @ 6.08 20,976 1,840 @ 6.40 11,776 2,760 @ 6.50 17, 940 1,610 @ 6.60 10,626 1, 150 @ 6.797,808.50 Total 12,190 $ 77, 406.50 | Average Cost per Unit = Total Cost Total Units Average Cost per Unit = $ 77,406.50 = $6.35 12,190 - Answer & Average Cost Per Unit - $6.35

Total 1 tuits Purchased - 121190 Duits. during the month Total Quits sold = 10,580 vuits. Units in Inventory = R = 12, 190 - 10,580 1,610 vuits. Cost of April 29 - 21 1,610 vuits Using FIFO method in - 1,150 units @ 6.79 = 7,808.50 - 460 vuits @ 6.60 = 3,036 1.610 units. $_10,844.50 = Inventory on 30th April (1,610 units) Using LIFO method :- To be considered for Inventory :- April 1 - 1,380 units @ $6.00 = $8,280 4 - 230 Vuits @ 6.08 = 1,398.40. liflo units & 9, 678.40

Inventory at 30th April Using Average Cost method. . 44610 Onits @ $6.35 = $ 10,223.50 2 Answer = Assuming that periodic - inventory records are kept in Units only the inventory at 30th April using - LIFO = $. 9, 678.40 Average - Cost = $ 10, 223.50 ③ Answer = Assuming that perpetual inventory records are kept in dollars, the inventory using : FIFO (1) LIFO (2) $110, 844.50 $ 19, 678.400 Inventory

Sold procedures Computation of Cost of Goods assuming periodic inventory inventory priced at FIFO Cost of Goods o sold = Total Cost - Innento Chere using FIFO method) 4 Cost of goods sold = = $ 77,406.50 - $10,844.50 $ 66,562 sales April 3 9 - - 1,150 @ 10.00 3,220 @ 10.00 1,380 @ 11.00 2,760 @ 11.00 2,070 @ 12.00 = = = $ 11,500 32,200 - 15, 180 at 30,360 24,840 023 2.27 = 10,580 Units $ 114,080 I Total sales Value = $ 114,080

= Cost of goods sold, Using Lito Method = = Total Cost - Inventor Cost (using LIfo method) $ 77,406.50 - $9678.40 $ $ 67,728.10 good sold, Using Average - lost mothod Cost of =) $ 27,406.50 - $10,223.50 = $ 67,183 © Net Income Statement | FIFO | LIFO Average - Cost Total sales Value $ 114,080 $ 114,080 $ 114,080 Less & Cost of Goods Sold 66,562 67,728.10 67,183 Net Income $ 47,518 $ 46,351.90$ 46,897 Highest Net Income is shown by FIFO Method.