Question

Coronado Company’s record of transactions concerning part X for the month of April was as follows. Purchases Sales April     1 (balance on hand) 310 @ $6.20 April     5 510 4 610 @ 6.30 12 410 11 510 @ 6.60 27 1,220 18 410 @ 6.60 28 150 26 810 @ 6.90 30 410 @ 7.20

Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 4 decimal places, e.g. 2.7682.) Average-cost per unit $ LINK TO TEXT

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 0 decimal places, e.g. 6,548.) (1) FIFO (2) LIFO (3) Average-cost Ending Inventory $ $ $ LINK TO TEXT

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 0 decimal places, e.g. 6,548.) (1) FIFO (2) LIFO (3) Average-cost Ending Inventory $ $ $

Answer 1

(a) FIFO Method
	Goods Purchased	Cost of Goods Sold	Inventory Balance
Date	Units	Cost Per Unit	Total ($)	Units	Cost Per Unit	Total ($)	Units	Cost Per Unit	Total ($)
Apr-01							310	$6.20	1922
Apr-04	610	$6.30	3,843				310	$6.20	1922
							610	$6.30	3,843
Apr-05				310	$6.20	1,922
				200	$6.30	1,260	410	$6.30	2,583
Apr-11	510	6.6	3,366				410	$6.30	2,583
							510	6.6	3,366
Apr-12				410	$6.30	2,583	510	6.6	3,366
Apr-18	410	6.6	2706				510	6.6	3,366
							410	6.6	2706
Apr-26	810	6.9	5589				510	6.6	3,366
							410	6.6	2706
							810	6.9	5589
Apr-27				510	6.6	3,366
				410	6.6	2706
				300	6.9	2,070	510	6.9	3519
Apr-28				150	6.9	1,035	360	6.9	2484
Apr-30	410	7.2	2952				360	6.9	2484
							410	7.2	2952
Total	2750		18,456	2290		14,942	770		5,436
(b) LIFO Method
	Goods Purchased	Cost of Goods Sold	Inventory Balance
Date	Units	Cost Per Unit	Total ($)	Units	Cost Per Unit	Total ($)	Units	Cost Per Unit	Total ($)
Apr-01							310	$6.20	1922
Apr-04	610	$6.30	3,843				310	$6.20	1922
							610	$6.30	3,843
Apr-05				510	$6.30	3,213	310	$6.20	1922
							100	$6.30	630
Apr-11	510	6.6	3,366				310	$6.20	1922
							100	$6.30	630
							510	6.6	3,366
Apr-12				410	$6.60	2,706	310	$6.20	1922
							100	$6.30	630
							100	6.6	660
Apr-18	410	6.6	2706				310	$6.20	1922
							100	$6.30	630
							100	6.6	660
							410	6.6	2706
Apr-26	810	6.9	5589				310	$6.20	1922
							100	$6.30	630
							100	6.6	660
							410	6.6	2706
							810	6.9	5589
Apr-27				810	6.9	5589	310	$6.20	1922
				410	6.6	2706	100	$6.30	630
							100	6.6	660
Apr-28				100	6.6	660	310	$6.20	1922
				50	6.3	315	50	$6.30	315
Apr-30	410	7.2	2952				310	$6.20	1922
							50	$6.30	315
							410	7.2	2952
Total	2750		18,456	2290		15,189	770		5,189
(c) Weightage Average Method
	Goods Purchased	Cost of Goods Sold	Inventory Balance
Date	Units	Cost Per Unit	Total ($)	Units	Cost Per Unit	Total ($)	Units	Cost Per Unit	Total ($)
Apr-01							310	6.2000	1922.0000
Apr-04	610	6.3000	3843.0000				920	6.2663	5765.0000
Apr-05				510	6.2663	3195.8130	410	6.2663	2569.1830
Apr-11	510	6.6000	3366.0000				920	6.4513	5935.1830
Apr-12				410	6.4513	2645.0330	510	6.4513	3290.1500
Apr-18	410	6.6000	2706.0000				920	6.5176	5996.1500
Apr-26	810	6.9000	5589.0000				1730	6.6966	11585.1500
Apr-27				1220	6.6966	8169.8520	510	6.6966	3415.2980
Apr-28				150	6.6966	1004.4900	360	6.6966	2410.8080
Apr-30	410	7.2000	2952.0000				770	6.9647	5362.8080
Total	2750		18456.0000	2290		15015.1880	770		5362.8080

Average Cost per Unit = Total Cost / Units = 20,378 / 3060 = $6.6595

	(1) FIFO		(2) LIFO		(3) Average-cost
Ending Inventory	$5,436		$5,189		$5362.8080