Monty Company's record of transactions for the month of April was as follows. Purchases Sales ...
Question:
Monty Company?s record of transactions for the month of April was as follows.
| Purchases | Sales | |||
|---|---|---|---|---|
| April 1 | (balance on hand) | 666 @ $6.00 | April 3 | 555 @ $11.00 |
| 4 | 1,665 @ 6.08 | 9 | 1,554 @ 11.00 | |
| 8 | 888 @ 6.39 | 11 | 666 @ 12.00 | |
| 13 | 1,332 @ 6.59 | 23 | 1,332 @ 12.00 | |
| 21 | 777 @ 6.69 | 27 | 999 @ 13.00 | |
| 29 | 555 @ 6.88 | 5,106 | ||
| 5,883 |
a. Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit.
b. Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using LIFO and average-cost.
c. Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO.
d. Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
e. In an inflationary period, which inventory method-FIFO, LIFO, average-cost-will show the highest net income?
Inventory Costing Method
There are 4 common types of inventory costing method:
- First-in First-out (FIFO) Method
- Last-in First-out (LIFO) Method = not allowed anymore
- Weighted-average Cost Method
- Specific Identification Method
Answer and Explanation: 1
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View this answera. Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit.
| Date | Number of Units | Cost... |
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
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