SP\'18 ACCO 211-90/ Chapter 8 Problem 8-4 Stellar Company\'s record of transacti

Question

SP'18 ACCO 211-90/ Chapter 8 Problem 8-4 Stellar Company's record of transactions concerning part X for the month of April was as follows. Purchases Sales April 1 (balance on hand) 290$6.00 April 5 490 12 390 27 1,180 28 150 590 6.12 490 6.36 3906.42 790 6.72 390 6.96 18 26 30 Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 2 decimal places, e.g. 2.76. 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 O decimal places, e.g. $6,548.) FIFO LIFO 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 O decimal places, e.g. 6,548.) FIFO LIFO Average-cost Ending Inventorys Question Attempts: 0 of 3 used Copyright © 2000-2018 by John wley & Sons, re. or related companes AIngrts reserved

Explanation / Answer

Average-cost per unit = $6.46

(Beginning inventory + Purchases)/Total number of units = ($1740 + $17254.20)/(290 + 2650) = $18994.20/2940 = $6.46

Working:

(1) (2) (3) FIFO LIFO Average-cost Ending inventory $ 4999 4433 4716 (390x$6.96)+(340x$6.72) (290x$6)+(440x$6.12) (730x$6.46)

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