Question

Some of the information found on a detail inventory card for Metlock Inc. for the first month of operations is as follows. Date January 2 Received Issued, Balance, No. of Units Unit Cost No. of Units No. of Units 1,700 $3.84 1,700 1,200 500 1,100 4.10 1,600 1,000 600 1,500 800 1,300 1,100 1,800 4.35 2,000 1,300 700 2,100 4.48 2,800 1,800 1,000 4.22 200 Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit $

Answer 1

	Received
Date	Unit	Cost per unit	Total cost
	a	b	a*b
Jan 2.	1700	3.84	6528
Jan 10.	1100	4.1	4510
Jan 18.	1500	4.22	6330
Jan 23.	1800	4.35	7830
Jan 28.	2100	4.48	9408
	8200		34606
Average cost per unit=34606/8200=$ 4.22
Ending inventory in units=1000 units
FIFO:
Goods purchased first are sold first
Hence,ending inventory of 1000 units consist of last purchase (Jan 28.)
Ending inventory=1000*4.48=$ 4480
LIFO:
Goods purchased last are sold first
Hence,ending inventory of 1000 units consist of first purchase (Jan 2)
Ending inventory=1000*3.84=$ 3840
Average-cost:
Ending inventory=Units in inventory*Average cost per unit=1900*4.22=$ 8018
FIFO:
Would amount be same ?			Yes
Under FIFO method,Goods purchased first are sold first.
	Purchases			Cost of goods sold			Ending inventory
	# of units	Cost per unit	Total cost	# of units sold	Cost per unit	Cost of merchandise sold			Ending inventory
Jan 2.	1700	3.84	6528				1700	3.84	6528
Jan 7.				1200 units issued as follows:			500	3.84	1920
				1200	3.84	4608
Jan 10.	1100	4.1	4510				500	3.84	1920
							1100	4.1	4510
Jan 13.				1000 units issued as follows:
				500	3.84	1920	600	4.1	2460
				500	4.1	2050	(1100-500)
				(1000-500)
Jan 18.	1500	4.22	6330	800 units issued as follows:			1300	4.22	5486
				600	4.1	2460	(1500-200)
				200	4.22	844
				(800-600)
Jan 20.				1100 units issued as follows:			200	4.22	844
				1100	4.2	4620	(1300-1100)
Jan 23.	1800	4.35	7830				200	4.22	844
							1800	4.35	7830
Jan 26.				1300 units issued as follows:			700	4.35	3045
				200	4.22	844	(1800-1100)
				1100	4.35	4785
				(1300-200)
Jan 28.	2100	4.48	9408				700	4.35	3045
							2100	4.48	9408
Jan 31.				1800 units issued as follows:			1000	4.48	4480
				700	4.35	3045	(2100-1000)
				1100	4.48	4928
				(1800-700)
Total