Question

Oriole Company’s record of transactions concerning part X for the month of April was as follows.

Purchases							Sales
April     1	(balance on hand)		390	@	$7.00		April     5		590
4			690	@	7.10		12		490
11			590	@	7.40		27		1,380
18			490	@	7.50		28		150
26			890	@	7.80
30			490	@	8.10

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

$

eTextbook and Media

  

  

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		$		$		$

eTextbook and Media

  

  

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

1

Moving average cost
	Inventory balance	Total cost	Average cost for each units
1-Apr	390.00	2,730.00	7.00
4-Apr	1,080.00	7,629.00	7.06
5-Apr	490.00	3,459.40	7.06
11-Apr	1,080.00	7,825.40	7.25
12-Apr	590.00	4,277.50	7.25
18-Apr	1,080.00	7,952.50	7.36
26-Apr	1,970.00	14,894.50	7.56
27-Apr	590.00	4,460.40	7.56
28-Apr	150.00	1,134.00	7.56
30-Apr	640.00	5,103.00	7.97

Average Cost found by Cost / Units in Hand

Units as per Purchase will add and Sales will less