Novak Company's record of transactions concerning part X for the month of April was as follows:...
Question:
Novak Company's record of transactions concerning part X for the month of April was as follows:
| Purchases | Sales | ||
| April 1 (balance on hand) | 340 @ $6.50 | April 5 | 540 |
| April 4 | 640 @ $6.63 | April 12 | 440 |
| April 11 | 540 @ $6.89 | April 27 | 1,280 |
| April 18 | 440 @ 6.96 | April 28 | 150 |
| April 26 | 840 @ 7.28 | ||
| April 30 | 440 @ 7.54 | ||
A.) Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Average-cost per unit: $__________
B.) Compute the inventory at April 30 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.) _____________________
C. If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under
(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.) _____________________
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. Average-cost per unit
| Date | Number of Units | Cost Per Unit | Total Cost |
|---|---|---|---|
| April 1 | 340 | $6.50 | $2,210 | ...
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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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