Coronado Company\'s record of transactions for the month of April was as follows

Question

Coronado Company's record of transactions for the month of April was as follows. Purchases Sales Apri 1 (balance on hand 750 $5.00 1,875@ 5.07 1,000 @ 5.36 1,500 @ 5.56 875 5.66 625 5.86 April 3 625$11.00 9 1,750 11.00 11 750 12.00 23 1,500 12.00 27 1,12513.00 13 21 29 5,750 6,625 Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit 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 (1) FIFO and (2) LIFO. (Round answer to 0 decimal places, e.g. 2,760.) FIFO LIFO Inventory s 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 g 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

1. Average cost per unit using periodic inventory method is:

2.

3. Inventory using FIFO and LIFO is:

Weighted Average Date Explanation Units Unit Cost Cost Apr-01 Opening Inventory 750 5.00 3,750 Apr-04 Purchased Inventory 1,875 5.07 9,506 Apr-08 Purchased Inventory 1,000 5.36 5,360 Apr-13 Purchased Inventory 1,500 5.56 8,340 Apr-21 Purchased Inventory 875 5.66 4,953 Apr-29 Purchased Inventory 625 5.86 3,663 Cost of goods available for sale 6,625 35,571 Average Cost 35,571/6,625 5.37

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