Question

Lyon Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Purchases Date Sales Units Units 7 Unit Cost $62 July 1 July 6 July 11 3 $66 July 14 July 21 July 27 Calculate average cost for each unit. (For calcula rs purpose round unit costs to 2 decimal places, eg. 15.25.) July 1 $ July 6 $

Answer 1

		FIFO	Moving average	LIFO
Ending Inventory		$213	$196	$195
			(65.43*3)
	FIFO method
		Purchase(receipt)				Sale				Balance
	Date	Qty.	Rate	Amount		Qty.	Rate	Amount(Rs.)		Qty.	Rate	Amount
	01-Jul	7	62	$434						7	62	$434
	06-Jul					5	62	$310		2	62	$124
	11-Jul	3	66	$198						2	62	124
										3	66	198
	14-Jul					2	62	$124
						1	66	$66		2	66	$132
	21-Jul	4	71	$284						2	66	132
										4	71	284
	27-Jul					2	66	$132
						1	71	$71		3	71	$213
	Total	14		$916
			Average Cost	$65.43
	LIFO method
		Purchase(receipt)				Sale				Balance
	Date	Qty.	Rate	Amount		Qty.	Rate	Amount(Rs.)		Qty.	Rate	Amount
	01-Jul	7	62	$434						7	62	$434
	06-Jul					5	62	$310		2	62	$124
	11-Jul	3	66	$198						2	62	124
										3	66	198
	14-Jul					3	66	$198		2	62	$124
	21-Jul	4	71	$284						2	62	124
										4	71	284
	27-Jul					3	71	$213		2	62	124
										1	71	$71
												195