Question

Some of the information found on a detail inventory card for Oriole Inc. for the first month of operations is as follows.

		Received
Date		No. of Units		Unit Cost		Issued, No. of Units		Balance, No. of Units
January     2		1,700		$4.74				1,700
7						1,200		500
10		1,100		5.06				1,600
13						1,000		600
18		1,500		5.21		800		1,300
20						1,100		200
23		1,800		5.37				2,000
26						1,300		700
28		2,100		5.53				2,800
31						1,800		1,000

Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Average-cost per unit

$ 5.21

From these data compute the ending inventory 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 0 decimal places, e.g. 6,548.)

		(1) FIFO		(2) LIFO		(3) Average-cost
Ending Inventory		$ 5530		$ 4740		$ 5210

If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)

		(1) FIFO		(2) LIFO		(3) Average-cost
Would amount be same		Yes		No		No
Ending Inventory		$ 5530		$ 5292		$ ?????

Answer 1

Average cost

Date	Received			Issued			Balance
	Unit	Unit cost	Amount	Unit	Unit cost	Amount	Unit	Unit cost	Amount
Jan.2	1700	$4.74	$8,058				1700	$4.74	$8,058
7				1200	$4.74	$5,688	500	4.74	2,370
10	1100	5.06	5566				1600	4.96	7936
13				1000	4.96	4960	600	4.96	2976
18	1500	5.21	7815	800	5.1386	4111	1300	5.1386	6680
20				1100	5.1386	5652	200	5.1386	1028
23	1800	5.37	9666				2000	5.347	10694
26				1300	5.347	6951	700	5.347	3743
28	2100	5.53	11613				2800	5.4843	15356
31				1800	5.4843	9872	1000	5.4843	5484

Ending inventory for Average cost = $5,484