Purchases Sales Assuming that periodic inventory records are kept in units only,

Question

Purchases

Sales

Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using LIFO and average-cost. (Round answer to 0 decimal places, e.g. 2,760.)

Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (Round answer to 0 decimal places, e.g. 2,760.)

(1)
FIFO

(2)
LIFO

Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.)

John Adams Company’s record of transactions for the month of April was as follows.

Purchases

Sales

April 1 (balance on hand) 660 @ $   6.00 April 3 550 @ $8.85 4 1,650 @ 6.15 9 1,540 @ 8.85 8 880 @ 6.39 11 660 @ 10.57 13 1,320 @ 6.55 23 1,320 @ 10.57 21 770 @ 6.92 27 990 @ 12.74 29 550 @ 7.26 5,060 5,830

Explanation / Answer

1) Computation of Average Cost

Average Cost = Total Cost/ Total Units=$38,094.10/5830 units=$6.53 Per Unit

Average Cost per unit is $6.53.

Date Units Price$ Total Cost Apr-01 660 6.6      4,356.00 Apr-04 1650 6.15    10,147.50 Apr-08 880 6.39      5,623.20 Apr-13 1320 6.55      8,646.00 Apr-21 770 6.92      5,328.40 Apr-29 550 7.26      3,993.00 5830    38,094.10

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