Acc422 Intermediate Accounting: E8-14 LoBianco Company's record of transactions for the month

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Acc422 Intermediate Accounting

E8-14 (FIFO and Average Cost Determination)
LoBianco Company's record of transactions for the month of April was as follows.
Purchases Sales
April 1 (Balance on hand) 600 @ $6.00 April 3 500 @ $10.00
4 1,500 @ $6.08 9 1,300 @ $10.00
8 800 @ $6.40 11 600 @ $11.00
13 1,200 @ $6.50 23 1,200 @ $11.00
21 700 @ $6.60 27 900 @ $12.00
29 500 @ $6.79 4,500
5,300

Instructions:
(a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average cost.
(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO
(c) In an inflationary period, which inventory method - FIFO or average cost - will show the highest net income?
(c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
(d) In an inflationary period, which inventory method–FIFO, LIFO, average cost–will show the highest net income?
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