Some of the information found on a detail inventory card for Headland Inc. for the first month of operations is as follows.
Received
Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units
January 2 1,700 $3.39 1,700
7 1,200 500
10 1,100 $3.62 1,600
13 1,000 600
18 1,500 $3.73 800 1,300
20 1,100 200
23 1,800 $3.84 2,000
26 1,300 700
28 2,100 $3.96 2,800
31 1,800 1,000
Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Average-cost per unit $ _____
From these data compute the ending inventory 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 0 decimal places, e.g. 6,548.)
(1) FIFO (2) LIFO (3) Average-cost
Ending Inventory $ $ $
If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)

Respuesta :

Answer:

Average-cost per unit $ $3.73

ending inventory in units only:

  • FIFO = 1,000 x $3.96 = $3,960
  • LIFO = 1,000 x $3.39 = $3,390
  • Average = $3,728

ending inventory including $:

  • FIFO = 1,000 x $3.96 = $3,960 (this will not change)
  • LIFO = 1,000 x $3.96 = $3,960 (this will change)
  • Average = $3,728 / (this will not change)

Explanation:

Date                   units            units       unit           total            balance

                          purchased  sold        price

January 2           1,700                         $3.39       $5763            1,700

7                                            1,200                                                500

10                        1,100                         $3.62        $3982           1,600

13                                          1,000                                                 600

18                       1,500                         $3.73        $5595            2,100

18                                           800                                                1,300

20                                         1,100                                                 200

23                      1,800                         $3.84        $6912           2,000

26                                        1,300                                                  700

28                      2,100                         $3.96        $8316           2,800

31                                         1,800                                               1,000

total                   8,200                        $3.7278   $30,568