Acc550 Intermediate Accounting: P8-4 Hull Company’s record of transactions concerning part X

Acc550 Intermediate Accounting 
P8-4 Compute FIFO, LIFO, and Average Cost 
Hull Company’s record of transactions concerning part X for the month of April was as follows. 
Purchases Sales 
Quantity Unit Cost Quantity
1-Apr (Balance on hand) 100 5.00 5-Apr 300 
4-Apr 400 5.10 12-Apr 200 
11-Apr 300 5.30 27-Apr 800 
18-Apr 200 5.35 28-Apr 150 
26-Apr 600 5.60 
30-Apr 200 5.80 

Instructions: 
(a) Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. 
(1) First-in, First-out, (FIFO). (Assuming costs are not computed for each withdrawal - Perpetual.) 
(2) Last-in, First-out, (LIFO). (Assuming costs are not computed for each withdrawal - Perpetual.) 
(3) Average cost. 
(b) 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 in 1, 2, and 3 above? Carry average unit costs to four decimal places. 
(1) First-in, First-out, (FIFO). (Assuming costs are computed for each withdrawal - Perpetual.) 
(2) Last-in, First-out, (LIFO). (Assuming costs are computed for each withdrawal - Perpetual.) 
(3) Average Cost. (Perpetual.)
Powered by