Hull Company’s record of transactions concerning part X for the month of April w
ID: 2471232 • Letter: H
Question
Hull Company’s record of transactions concerning part X for the month of April was as follows.
Purchases
Sales
A)Calculate 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.
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) FIFO, (2) LIFO and (3) Average-cost?
Purchases
Sales
April 1 (balance on hand) 490 @ $7.40 April 5 690 4 790 @ 7.60 12 590 11 690 @ 7.90 27 1,580 18 590 @ 7.90 28 150 26 990 @ 8.30 30 590 @ 8.60Explanation / Answer
A) Date Particulars Qty Rate Value $ in $ 01-Apr Opening Inventory 490 7.4 3626 04-Apr Purchases 790 7.6 6004 11-Apr Purchases 690 7.9 5451 18-Apr Purchases 590 7.9 4661 26-Apr Purchases 990 8.3 8217 30-Apr Purchases 590 8.6 5074 Total 4140 33033 Average Cost per unit 7.979 C) Calculation of Closing Inventory in Units and Dollars - Valuation Method wise Under FIFO - Quantity and Value of Closing Inventory Date Particulars Qty Rate Value $ in $ 01-Apr Opening Inventory 490 7.4 3626 04-Apr Purchases 790 7.6 6004 05-Apr Cost of Goods Sold -490 7.4 -3626 05-Apr Cost of Goods Sold -200 7.6 -1520 11-Apr Purchases 690 7.9 5451 12-Apr Cost of Goods Sold -590 7.6 -4484 18-Apr Purchases 590 7.9 4661 26-Apr Purchases 990 8.3 8217 27-Apr Cost of Goods Sold -690 7.9 -5451 27-Apr Cost of Goods Sold -590 7.9 -4661 27-Apr Cost of Goods Sold -300 8.3 -2490 28-Apr Cost of Goods Sold -150 8.3 -1245 30-Apr Purchases 590 8.6 5074 30-Apr Closing Inventory 540 8.3 4482 Closing Inventory 590 8.6 5074 1130 9556 Under LIFO - Quantity and Value of Closing Inventory Date Particulars Qty Rate Value $ in $ 01-Apr Opening Inventory 490 7.4 3626 04-Apr Purchases 790 7.6 6004 05-Apr Cost of Goods Sold -690 7.6 -5244 11-Apr Purchases 690 7.9 5451 12-Apr Cost of Goods Sold -590 7.9 -4661 18-Apr Purchases 590 7.9 4661 26-Apr Purchases 990 8.3 8217 27-Apr Cost of Goods Sold -990 8.3 -8217 27-Apr Cost of Goods Sold -590 7.9 -4661 28-Apr Cost of Goods Sold -100 7.9 -790 28-Apr Cost of Goods Sold -50 7.6 -380 30-Apr Purchases 590 8.6 5074 30-Apr Closing Inventory 590 8.6 5074 Closing Inventory 50 7.6 380 Closing Inventory 490 7.4 3626 1130 9080 Under Weighted Average - Quantity and Value of Closing Inventory Date Particulars Qty Rate Value $ in $ 01-Apr Opening Inventory 490 7.4 3626 04-Apr Purchases 790 7.6 6004 1280 7.523 9630 05-Apr Cost of Goods Sold -690 7.523 -5191.2 11-Apr Purchases 690 7.9 5451 1280 7.726 9889.8 12-Apr Cost of Goods Sold -590 7.726 -4558.6 18-Apr Purchases 590 7.9 4661 26-Apr Purchases 990 8.3 8217 2270 8.022 18209 27-Apr Cost of Goods Sold -1580 8.022 -12674 28-Apr Cost of Goods Sold -150 8.022 -1203.3 30-Apr Purchases 590 8.6 5074 30-Apr Closing Inventory 1130 8.324 9405.7
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