Hull Company’s record of transactions concerning part X for the month of April w
ID: 2450513 • Letter: H
Question
Hull Company’s record of transactions concerning part X for the month of April was as follows.
Purchases Sales
April 1 (balance on hand) 450 @ $6.50 April 5 650
4 750 @ 6.70 12 550
11 650 @ 6.90 27 1,500
18 550 @ 7.00 28 150
26 950 @ 7.30
30 550 @ 7.60
Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7621.)
Average-cost per unit $
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.)
(1) FIFO (2) LIFO (3) Average-cost
Ending Inventory $ $ $
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) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)
(1) FIFO (2) LIFO (3) Average-cost
Ending Inventory $ $ $
Explanation / Answer
Calculation of Average cost :
Average Cost per Unit = 27,400 / 3,900 = $7.0256
Date Units Rate Total 1 450 6.50 2,925 4 750 6.70 5,025 11 650 6.90 4,485 18 550 7 3,850 26 950 7.30 6,935 30 550 7.60 4,180 Total 3,900 27,400Related Questions
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