Some of the information found on a detail inventory card for Cheng Ltd. for the first month of operations is as follows (¥ amounts in thousands).

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 two decimal places and ending inventory to the nearest 1,000 yen.)
1. First-in, first-out (FIFO).
2. Average-cost.
b. If the perpetual inventory record is kept in yen, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in 1 and 2 above be the same? Explain and compute.

Transcribed Image Text:

Received No. of Units Unit Cost Issued, No. of Units Balance, No. of Units Date January 2 1,200 ¥3.00 1,200 700 500 10 600 3.20 1,100 500 600 13 18 1,000 3.30 300 1,300 200 20 1,100 3.40 1,500 23 1,300 26 800 700 28 1,600 3.50 2,300 31 1,300 1,000