Question
Purchases: Sales April 1 (balance on hand) 290 @ $6.00 April 5 490 4 590 @ $6.10 12 390 11 490 @ $6.40 27 390
Purchases: Sales
April 1 (balance on hand) 290 @ $6.00 April 5 490
4 590 @ $6.10 12 390
11 490 @ $6.40 27 390
18 390 @ $6.40 28 1180
26 790 @ $6.70
30 390 @ $7.00
I calculated the average-cost per unit and it is $6.4605
Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost.
If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost?
Please show me the steps not just answers. I want to understand how and why.
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