Question

Sunland Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 1,020 @ $6.00 April 3 850 @ $10.00 4 2,550 @ 6.08 9 2,380 @ 10.00 8 1,360 @ 6.40 11 1,020 @ 11.00 13 2,040 @ 6.50 23 2,040 @ 11.00 21 1,190 @ 6.60 27 1,530 @ 12.00 29 850 @ 6.79 7,820 9,010

(a1) Your answer is correct. 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 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 2 of 15 used

(a2) 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 $ Click if you would like to Show Work for this question: O

Answer 1

Solution

Requirement 1: Average cost per unit = $ 6.35

Weighted Average Cost Per unit
Units		(A)	9010
Total Cost		(B)	$ 57,213.50
Average Cost		(C=B/A)	$           6.35

Requirement 2:

	LIFO	Weighted Average
Ending Inventory	$ 7,154	$ 7,557

Working:

Periodic LIFO
A	Total Units Available for sale			9010		$    57,213.50
	Units Sold			7820
	Ending Inventory Units			1190
	Valuation
	Cost of Goods Sold		850		$                           6.79	5,771.50
			1190		$                           6.60	7,854.00
			2040		$                           6.50	13,260.00
			1360.00		$                           6.40	8,704.00
			2380.00		$                           6.08	14,470.40
						-
B	Cost of Goods Sold		7820	units		$    50,059.90
A-B	Ending Inventory		1190	units		$      7,153.60

	Weighted Average
A	Total Units Available for sale			9010		$    57,213.50
	Units Sold			7820
	Ending Inventory Units			1190
	Valuation
	Cost of Goods Sold		7820		$                       6.3500	$    49,657.00
B	Cost of Goods Sold		7820	units		$          49,657
A-B	Ending Inventory		1190	units		$            7,557

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