Some of the information found on a detail inventory card for David Letterman Inc. for the first month of operations is as follows.

Instructions
(a) From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent and ending inventory to the nearest dollar.
(1) First-in, first-out (FIFO).
(2) Last-in, first-out (LIFO).
(3) Average-cost.
(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in 1, 2, and 3 above be the same? Explain and compute.

Transcribed Image Text:

Received Issued Unit No. of Units No. of Balance, Date 1,200 $3.00 3.20 3.30 3.40 1,200 500 1,100 600 1,300 200 1,500 700 2,200 900 January 2 700 10 13 18 20 23 26 28 31 600 500 300 1,100 1,000 1,300 1,500 800 3.60 1,300