Question

METHOD PERPETUAL

P8.4 (LO 3) Excel (Compute FIFO, LIFO, and Average-Cost) Hull Company's record of trans- actions concerning part X for the month of April was as follows. Purchases Sales April 1 (balance on hand) 100 @ $5.00 April 5 300 4 400 @ 5.10 12 200 11 300 @ 5.30 27 800 18 200 @ 5.35 28 150 26 600 @ 5.60 30 200 @ 5.80 Instructions a. Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. 1. First-in, first-out (FIFO). 2. Last-in, first-out (LIFO). 3. Average-cost.

Answer 1

FIFO method: Date puschase seiles Balance Unit Reete ($) Toled lumit. RCHE (3) -roteel mit Reede 3) tooted Aprill 100 500 100 5 |500 4 400 5.10 2040 400 15.10 2040 100 5 500 S loo 5 500120015-10 1.02 2005.10 1020 11 300 5.30 15.90 300 5.30 1590 200 5.10 1020 12 2005.10 10 20 300 5.30 1590 18 2001 5.3511070 2005.3511070 300 5.30 1590 26 600 5.60 3360 600 S.60 336 200 5,35 1070 300 5.30_1590 27 - 2005.35| 1070 300 5.30 1590 300 601680300 5.60 1680 28 1505.60840 150 5.60 30 2005.80 1160 2005.80 LIGO 5.60l suo - 840 - Value of Inventory at April 300 Total uri 200 iso 350 Reite 5.80 5.60 840 $ 2000 Total value of 350 units = $2000

LIFO method: Date purchase sales Balance Unit Rate Co-Total unit Rate & Toted Unit Rate (6) Total Aprill 100 5 500 11005 soo 4 400l5.1012040 400 5.10 2040 100 5: 500 5 300 5.10 15301 100 5.10 5.10 100 5 5oo 300 5.30 1590 300 5.30 11590 100 S10 SIO 100 soo 12 2005.30 1060 100 15.30 5.30 100 5, 10 510 Too 5 500 18 200 5.3511074 200 5:35 1070 loo 5,30 5.30 100 5,10 slo loo 5 500 26 600 5.60 3360 6oo5.60 3360 2005,35 1070 100 5,30 530 roo 516 loo 5 500 27 600 5.603360 1995-304530 200 5.35 1070 100 5.10 510 1ools Soo 28 Too 5.30 530 50 Solo 255 50 5.19 2551100 5 500 30 2005-80 1160 2005.80 1160 50 5. Jo 255 100 500 1 S. 10

value of Inventory at April 30 unit Rate Toted 200 50 LOO 35.0 5.80 So lo 5.00 1160oot 255 500 1915 Totul value of 350 units & $ 1915

Average cost method: Prachase sales Bylunce Unit Rate Toted unit rute) Totel Unit Reete (9) Toreel April Too 5 soo loo 5 500 4 400 5.10 2040 500 5,08 2540 300 5.081 15241 2005.08 11016 1 200 5.30 1590 500 5.212 2606 12 2005.2121042.4 300 5.212 1563.6 18200 5.35 1070 5005-26742633.6 26. 6oo5.60 3360 1100 5.4485993.6 27 800 5.44854356.96 300 5.4467 1634,61 28 150 5.4487817.305 iso 5.4487/817.305 3.0 2.00 15.801160 350 5.6494 1973.305 value of Inventory at April 30 enit Rate Total 350 X $5.6494 $ 1977,305 Tafel value of 350 units $ 1977.305 $ 1978