Exercise 8-11

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

Purchases							Sales
April 1	(balance on hand)		648	@	$5.00		April 3		540	@	$10.00
4			1,620	@	5.08		9		1,512	@	10.00
8			864	@	5.37		11		648	@	11.00
13			1,296	@	5.47		23		1,296	@	11.00
21			756	@	5.67		27		972	@	12.00
29			540	@	5.84				4,968
			5,724

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

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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		$

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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		$		$

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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

$

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In an inflationary period, which inventory method-FIFO, LIFO, average-cost-will show the highest net income? Average-cost FIFO LIFO inventory method will show the highest net income.