John Adams Company prime s record of transactions for the month of April was as

Question

John Adams Company prime s record of transactions for the month of April was as follows. Assuming that periodic inventory records are kept in units only, calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit $ 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.) LIFO $ Average-cost $ Assuming that perpetual inventory records are kept in dollars, determine the inventory using FIFO and LIFO. (Round answer to 0 decimal places, e.g. 2,760.) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.) Cost of goods sold $ In an inflationary period, which inventory method-FIFO, LIFO, average-cost-will show the highest net income? inventory method will show the highest net income.

Explanation / Answer

a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using

(1) LIFO and (2) average

2 Value of the inventory under FIFO and LIfo

3

Cost of Goods Sold Under FIFO

=43437.6

4

In the inflamatory period which method give highest Net income

Answer: FIFO

working Notes for the above answer

Inventory Value Lifo 1008 6084 Avg. Cost 1008 6693.12

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