Question

Wildhorse Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Purchases Date Units Unit Cost Sales Units July 1 5 $166 July 6 3 July 11 6 $180 July 14 5 July 21 7 $191 July 27 5

Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27. (Round answers to 2 decimal places, e.g. $105.50.) Average cost for each unit July 1 $ July 6 $ July 11 $ July   14 $ July 21 $ July 27 $ LINK TO TEXT

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO. (Round average-cost per unit to 2 decimal places, e.g. 12.52 and final answer to 0 decimal places, e.g. 1,250.) FIFO MOVING-AVERAGE LIFO The ending inventory under a perpetual inventory system $ $ $ LINK TO TEXT

Which costing method produces the highest ending inventory valuation? LIFO method Average-cost method FIFO method

Answer 1

Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27. (Round answers to 2 decimal places, e.g. $105.50.) Average cost for each unit July 1 $166 July 6 $166 July 11 (2*166+6*180/8) 176.50 July   14 176.50 July 21 (7*191+3*176.50/10) $186.65 July 27 $186.65 LINK TO TEXT

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO. (Round average-cost per unit to 2 decimal places, e.g. 12.52 and final answer to 0 decimal places, e.g. 1,250.) FIFO MOVING-AVERAGE LIFO The ending inventory under a perpetual inventory system 5*191 = 955 5*186.65 = 933.25 (2*166+1*180+2*191) = 894

Highest inventory method = FIFO