uly 1 13 118 July 6 10 $126 uly 11 July 14 July 21 uly 27 S136 Your answer is co

Question

uly 1 13 118 July 6 10 $126 uly 11 July 14 July 21 uly 27 S136 Your answer is correct. Calculate average cost for each unit. (For calculotlon and answers purpose round unit costs to 2 decimal places, e.g. 15.25.) July 1 uly 6 uly 11 July 14 July 21 July 23 SHOW ANSWER xYour answer is incorrect. Try again. Determine the ending inventary under a perpetual inventory system using (1) FIFO, (2) maving-average, and (3) LIFO. (For calculation and ansyers purpose round unit costs to 2 decinal places, e-g. 15.25 and ending inventory valcues to 0 decimal places, e9. 515) FIFO HOVING AVERAG LIFO The ending inventory under a perpetual inventory system

Explanation / Answer

UNITS cost pu UNITS SOLD 01-Jul 13 118 06-Jul 10 11-Jul 6 126 14-Jul 6 21-Jul 8 136 27-Jul 6 27 22 Closing Inventory = 27 units purchased- 22 unit sold = 5 units Closing Inventory Using FIFO Units purchasedfirst will be sold first. Therefore units purchasedon 21 july will be remaining as closing stock Therefore, cost of closing stock will be = 5 units*$136 p.u = $680 Closing Inventory Using LIFO Units purchased latest will be sold first. Therefore units purchasedon 21 july will be remaining as closing stock UNITS SOLD Units purchased Units sold Closing Stock cost pu Cost of closing Stock 01-Jul 13 10 units sold on 06.07 3 $     118.00 $ 354.00 11-Jul 6 6 units sold on 14.07 0 $     126.00 $           -   21-Jul 8 6 units sold on 27.07 2 $     136.00 $ 272.00 Cost of closing stock using LIFO $ 626.00 Closing Inventory Using Moving Average In this method, new average unit cost must be computed with each purchase transaction Purchases Sales Closing Stock Units cost pu Total Cost Units cost pu Total Cost Units cost pu Total Cost 01-Jul 13 $ 118.00 $ 1,534.00 13 $ 118.00 $ 1,534.00 06-Jul 10 $ 118.00 $ 1,180.00 3 $ 118.00 $     354.00 11-Jul 6 $ 126.00 $     756.00 9 $ 123.33 $ 1,110.00 (3+6 units) (1110/9 units) ($354+756) 14-Jul 6 $ 123.33 $     740.00 3 $ 123.33 $     370.00 21-Jul 8 $ 136.00 $ 1,088.00 11 $ 132.55 $ 1,458.00 (3+8units) ($370+1088) 27-Jul 6 $ 132.55 $     795.27 5 $ 132.55 $     662.73 27 22 Cost pf closing inventory using Moving Average = $662.73

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