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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A. 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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