can someone please explain how to solve perpetual inventory I dont really get ho

Question

can someone please explain how to solve perpetual inventory
I dont really get how they got that answer

200 x $6.60 Z00 3,395 1320 (2) Average cost (AC) $4.715 Average cost/Unit - Total cost Total units 33.655-$6.35 5,300 # + Cost of ending inventory 700 x $6.35 $4,445 b) (1) FIFO: Date Purchases COGS (sales) Balance (inventory) Units U nit cost Total cost Units Unit cost Total cost Units Unit cost Total cost $3,600 $600 $600 $9,120 100 $6 $600 1,500 $6.08$9,120 April 1 April 3 600 $ 16 | $3,000-le 500 $6 -- $6 100 April 41,500$6.089,120 1,500 $6.08 April 8 800 April 9 April 11 $6.40 5,120 800 $6.40 200 $5,120 $6 1,300 $6.08$7,904 800$ 6.40 $5,120 200 $6.08 $1,216 400$6.40 $2, 560 400 $6.40 $2,560 400 $6.40 $2, 560 April 13 | 1,200 | $0.50 $7,800 1,200 $6.50 $7,80 400 $6.40 $2, 560 1,200 $6.50$7,800 $4,620 $2,600 800 $6.50 $5,200 700 $6.60 $4,620 400 $6.50 $2,600 200 $6.60 $1,320 200 $6.60 $1,320 700 $6.60 April 21 700 $6.60 $4,620 April 23 April 27 400 $6.40$2,560 400 500 $6.60 $3,300 500 $3,395 April 29500 $6.79 $3,395 $4,715 4,600 $28,940 700 Cost of ending inventory (FIFO) = $4,715 Chapter (8) cont. - Inventories-Second year 2017/2018- Sheet (8) - AMT

Explanation / Answer

Under perpetual inventory system,inventory is computed after each purchase and sale. (b) 1 FIFO : Under fifo method we assume that goods purchased first are sold first. Now look into the solution As on april 1,we have 600 units @ $6 per unit On April 3,Sold 500 units.Update inventory simulataneously.Reduce from inventory 500 units.Now, inventory balance is 100 units @ $6 per unit. Next transaction is purchase of 1500 units on April 4.Add these units to inventory.Updated inventory balance is 100 units @ $6 and 1500 units @$6.08 per unit.   Next transaction is purchase of 800 units on April 8.Add these units to inventory.Updated inventory balance is 100 units @ $6 per unit,1500 units @$6.08 per unit and 800 units @$6.40 per unit. Next transaction is sale of 1400 units on April 9.reduce these units from inventory in the following manner.Reduce from the old stock first.Updated inventory balance is 200 units @$6.08 per unit and 800 units @$6.40 per unit. Same logic continues for subsequent transactions. 2 Moving average: Under moving average,inventory is valued using weighted average cost per unit. Now look into the solution As on april 1,we have 600 units @ $6 per unit On April 3,Sold 500 units.Update inventory simulataneously.Reduce from inventory 500 units.Now, inventory balance is 100 units @ $6 per unit. Next transaction is purchase of 1500 units on April 4.Add these units to inventory.Then compute weighted average cost per unit. Weighted average cost per unit=Total cost/Total units=(600+9120)/1600=6.075 Now inventory balance is 1600 units @ $6.075 per unit Next transaction is purchase of 800 units on April 8.Add these units to inventory.then compute weighted average cost per unit. Weighted average cost per unit=Total cost/Total units=(9720+5120)/(1600+800)=6.183 Now inventory balance is 2400 units @ $6.183 per unit Next transaction is sale of 1400 units on April 9.reduce these units from inventory. Updated inventory balance is 1000 units @$6.183 per unit. Same logic continues for subsequent transactions.

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