Question

Some of the information found on a detail inventory card for Shamrock 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 1,300 $4.38 1,300 7 800 500 10 700 4.67 1,200 13 600 600 18 1,100 4.82 400 1,300 20 1,100 200 23 1,400 4.96 1,600 26 900 700 28 1,700 5.11 2,400 31 1,400 1,000

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

Average-cost per unit

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 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?

Answer 1

Ending Inventory under Perputual Inventory System and Periodical Inventory System must be same with each other.
	FIFO	LIFO	Average-cost
Ending inventory under Perpetual inventory System	$    5,110	$    4,889	$     5,058
Would amount be same?	Yes	No	No

First In First Out (FIFO) Method						Perpetual Inventory System
Date	Purchase			Cost of goods sold			Inventory on Hand
	Qty	Price	Value	Qty	Price	Value	Qty	Price	Value
January 2							1300	4.38	5694
January 7				800	4.38	3504	500	4.38	2190
January 10	700	4.67	3269				500	4.38	2190
							700	4.67	3269
January 13				500	4.38	2190	600	4.67	2802
				100	4.67	467
January 18	1100	4.82	5302				600	4.67	2802
							1100	4.82	5302
January 19				400	4.67	1868	200	4.67	934
							1100	4.82	5302
January 20				200	4.67	934	200	4.82	964
				900	4.82	4338
January 23	1400	4.96	6944				200	4.82	964
							1400	4.96	6944
January 26				200	4.82	964	700	4.96	3472
				700	4.96	3472
January 28	1700	5.11	8687				700	4.96	3472
							1700	5.11	8687
January 30				700	4.96	3472	1000	5.11	5110
				700	5.11	3577
Ending inventory							1,000		$        5,110

Home ert Page Layout Formulas Data Review V AB AC 39 Last In First Out (LIFO) Method Perpetual Inventory System Purchase Cost of goods sold Inventory on Hand Price 41 42 43 Date Qty Price Value Qty Price Value Qty Value January2 1300 4.38 5694 4.38 45 46 47 48 49 800 3504 500 4.38 2190 January / 4.38 4.67 January 10 700 4.67 3269 2190 3269 700 4.67 2802 4.38 4.67 2190 467 January 13 51 52 53 54 100 4.38 4.67 4.82 January 18 1100 4.82 5302 500 100 1100 2190 467 5302 56 57 58 59 4.38 4.67 4.82 January 19 400 4.67 1868 500 100 700 2190 467 3374 ctivate Windows 3374 61 lanuarv 20 700 200 4 38 876 4 82 トト1. Sheet175. Sheet1 76. Sheet1 77, Sheet1 78 Sheet1 79. Sheet1 80 Sheet181 Sheet182 Sheet183 Ready Circular Reterences Search the web and Windows 01-05-19

Home ert Page Layout Formulas Data Review V AC AD AB 4.82 59 60 61 62 63 64 65 700 3374 January 20 700 100 300 4.82 4.67 4.38 3374 467 1314 200 4.38 876 4.96 January 23 1400 6944 200 4.38 4.96 876 1400 6944 67 4.96 200 500 876 2480 January 26 900 4464 4.38 4.96 69 70 71 72 73 74 75 76 January 28 1700 5.11 8687 200 4.38 4.96 5.11 876 2480 8687 1700 7154 January 30 1400 5.11 200 4.38 4.96 5.11 876 2480 1533 300 78 79 $ 4,889 Ending inventory 1,000 ctivate indo 81 :4<トト1 Sheet175 Sheet176|Sheet177 Sheet1 78. Sheet1 79/Sheet1 80 Sheet181 Sheet182 Sheet183 Ready Circular Reterences Search the web and Windows 01-05-19

Home nert Page Layout Formulas Data Review V s Cut aCopy C AutoSum 11 Arap Text ClrSort& Find & ClearFilter Select dting 還很函Merge & Center, $, % , 'ila conditional For mlat Cell Insert Delete Format .Δ. e, Format Panter Blu. ㄧ˙ Formatting as Table Styles Clipboard Font AD100 AB PX AD 82 83 84 85 86 87 Perpetual Inventory System Inventory on Hand Moving Average Method Purchase Cost of goods sold Qty Price Value ty Price Value Qty Price Value Date 5694 January 2 1300 4.38 January7 800 500 4.38 89 90 31l 92 93 January 10 Unit Cost ((2190+3269)/(500+700)) 700 12004.5492 5459 .5492 January 13 600 4.5492 2730 600 4.5492 18 04.825302 95 96 97 98 1700 4.7247 4.7247 1100 Unit Cost ((2730+5302)/(600+1100)) 4.7247 1890 300 4.72476142 January 19 vate WindoWS January 20 100 200 4.7247 Sheet175 Sheet176 Sheet177 Sheet1 78 Sheet179 Sheet180 Sheet181 Sheet182 Sheet1832A0 Ready Circular Reterences 01-05-19 Search the web and Windows

Home nert Page Layout Formulas Data Review V 義Cut aCopy Format Painter Σ AutoSum , Fill В า 프. m. a-Δ. Ξミ 迣锂函Merge & Center. $, % , 弼皛Conditional Format. Cell. Insert Delete Format Sort &Find & Formatting as Table Styles ClearFilter Select Clipboard Font Cells dting Alignment AD117 AC AB AD 200 4.7247 945 100 101 102 103 104 105 106 107 108 109 110 January 20 11004.7247 5197 4.96 6944 January 23 Unit Cost ((945+6944)/(200+1400) 1400 1600 4.9306 4.9306 7889 January 26 9004.9306 4438 700 4.9306 3451 January 28 Unit Cost ((3451+8687)/(700+1700) 1700 5.11 8687 24005.0575 12138 5.0575 1400 5.0575 7081 January 30 1000 5.0575 5058 112 113 114 115 116 $ 5,058 Ending inventory 1,000 Ending Inventory under Perputual FIFO LIFO Average-cost Ending inv $ 5,110 $4,889 $ 5,058 Would am Yes vate WindoWS No No 4Sheet175Sheet176Sheet177 Sheet178 Sheet179 Sheet1 80 Sheet181 Sheet182 Sheet183 Ready Circular Reterences Search the web and Windows 01-05-19