Exercise 8-11

Splish Companys record of transactions for the month of April was as follows.

Purchases							Sales
April 1	(balance on hand)		1,680	@	$6.00		April 3		1,400	@	$10.00
4			4,200	@	6.08		9		3,920	@	10.00
8			2,240	@	6.40		11		1,680	@	11.00
13			3,360	@	6.50		23		3,360	@	11.00
21			1,960	@	6.60		27		2,520	@	12.00
29			1,400	@	6.79				12,880
			14,840

Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Average-cost per unit

$ per unit

Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using LIFO and average-cost. (Round answer to 0 decimal places, e.g. 2,760.)

LIFO		$
Average-cost		$

Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (Round answer to 0 decimal places, e.g. 2,760.)

		(1) FIFO		(2) LIFO
Inventory		$		$

Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.)

Cost of goods sold

$

In an inflationary period, which inventory methodFIFO, LIFO, average-costwill show the highest net income?

Average-cost FIFO LIFO

inventory method will show the highest net income.

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