Question

1 Approved Answer

Posted on Sep 19, 2024

i need C only Assignment 1 E8.8 (L03) (FIFO and Average-Cost Determination) LoBianco Company's record of transactions for the month of April was as follows.

i need C only image text in transcribed

Assignment 1 E8.8 (L03) (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 (Round unit price averages to four decimal places.) a. Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) FIFO and (2) average-cost. b. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost. c. In an inflationary period, which inventory methodFIFO or average-cost-will show the highest net income? Purchases Apr-01 (balance on hand) 600 @S Apr-04 1500 @S Apr-08 800 @ $ Apr-13 @S Apr-21 700 @ $ Apr-29 500 @ $ 6.00 6.08 6.40 6.50 6.60 6.79 Apr-01 Apr-09 Apr-11 Apr-23 Apr-27 Sales 500 1300 600 1200 @ $ 10.00 @ $ 10.00 @ $ 11.00 @ $ 11.00 @ $12.00 1200 900 5300 4500 Purchases Less:Sales Inventory 5300 -4500 800 FIFO method: 300 x $ 500 X $ 6.60 6.79 $1,980.00 $3,395.00 800 $5,375.00 Average Method Average cost per unit = $6.35 as follows Units Cost per Total unit 600 @ $ 6.00 = $ 3,600.00 1500 @ $ 6.08 = $ 9,120.00 800@ $ 6.40 = $ 5,120.00 1200 @ $ 6.50 = $ 7,800.00 700 @ $ 6.60 = $ 4,620.00 500 @ $ 6.79 = $ 3,395.00 5300 $ 6.35 $33,655.00 Inventory 800@ $ 6.35 = $ 5,080.00 Under FIFO inventory is $5375.00 where as Average method it was $5080.00, hence closing stock under FIFO is high and hence income under FIFO method is high B) INVENTORY -PERPETUAL SYSYTEM-FIFO Date 100 PURCHASE COST OF GOODS SOLD BALANCE RATE/UNIT UNITS AMOUNT RATE/UNIT UNITS AMOUNTRATE/UNIT UNITS AMOUNT 1 6.00 600 36001 3 6.00 500 3000 6.00 600 4 6.08 1500 91201 6.00 100 600 6.08 1500 9120 8 6.40 800 5120 6.00 100 600 6.08 1500 9120 6.40 800 5120 9 6.00 100 6001 6.08 300 1824 6.08 1200 7296 6.40 800 5120 11 6.08 300 1824 6.40 500 3200 6.40 300 1920 13 6.50 1200 7800 6.40 500 3200 6.50 1200 7800 21 6.60 700 4620 6.40 500 3200 6.50 1200 7800 6.60 700 46201 23 6.40 500 32001 6.50 500 3250 6.50 700 4550 6.60 700 46201 27 6.50 500 3250 6.60 300 1980 6.50 400 2600 29 6.79 500 3395 6.60 300 1980 6.79 500 3395 Total 800 5375 Under FIFO, Sales are made from old held stocks INVENTORY -PERPETUAL SYSTEM-weighted average cost PURCHASE COST OF GOODS SOLD RATE/UN UNITS AMOUNT RATE/UN UNITS AMOUNT Date 3 6.0000 6.08 6.40 1500 800 9120 5120 8 9 6.1830 6.1840 BALANCE RATE/UNIT UNITS AMOUNT 6.000 600.000 3600.000 6.000 100.000 600.000 6.075 1600.000 9720.000 6.183 2400.000 14840.000 6.184 1100.000 6802.100 6.183 500.000 3091.700 6.407 1700.000 10891.700 6.4632400.000 15511.700 6.463 1200.000 7755.600 6.463 300.000 1938.900 6.667 800.000 5333.900 Total 800 5333.900 500 3000.00 (9120 600/1600 19720*5120)/2400 1300 8037.90 (14840-8037.9/1100 600 3710.40 (6802.1-3710.4)/500 (3091.747800)/1700 (10891.744620)/2400 1200 7755.60 900 5816.70 (1938.943395)/800 11 1200 6.50 6.60 7800 4620 700 13 21 23 27 29 6.463 6.463 6.79 500 33951