Question
I need help calculating perpetual inventory ending inventory if costs are computed at the time of each withdrawal ( see Part 3 below ) I
I need help calculating perpetual inventory ending inventory if costs are computed at the time of each withdrawal (see Part 3 below)
I need help, with answers on LIFO and AVG-COST as well as a really good explanation (understandable, elementary) to help me do it by myself next time.
DATE # of Units Unit Cost Issued # of units Bal # of Units
2-Jan 1600 3.75 1600
7-Jan 1100 500
10-Jan 1000 4.00 1500
13-Jan 900 600
18-Jan 1400 4.13 700 1300
20-Jan 1100 200
23-Jan 1700 4.25 1900
26-Jan 1200 700
28-Jan 2000 4.38 2700
31-Jan 1700 1000
PART 3
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?
What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.) Would amount be same?
(1) FIFO = 4380 (yes, same)
(2) LIFO = ??? (no, not same)
(3) AVG-COST = ??? (no, not same)
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