Problem 85 Received Date No of Units Unit Cost Issued No of

Problem 8-5

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

LINK TO TEXT

LINK TO TEXT

(1)
FIFO

(2)
LIFO

(3)
Average-cost

LINK TO TEXT

LINK TO TEXT

(1)
FIFO

(2)
LIFO

(3)
Average-cost

LINK TO TEXT

LINK TO TEXT

SAVE FOR LATER

SUBMIT ANSWER

Problem 8-5 Some of the information found on a detail inventory card for Culver Inc. for the first month of operations is as follows. Received Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units January 2 1,600 $5.10 1,600 7 1,100 500 10 1,000 5.44 1,500 13 900 600 18 1,400 5.61 700 1,300 20 1,100 200 23 1,700 5.78 1,900 26 1,200 700 28 2,000 5.95 2,700 31 1,700 1,000 Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit $ LINK TO TEXT LINK TO TEXT From these data compute the ending inventory 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. (Round final answers to 0 decimal places, e.g. 6,548.) (1) FIFO (2) LIFO (3) Average-cost Ending Inventory $ $ $ LINK TO TEXT LINK TO TEXT 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.) (1) FIFO (2) LIFO (3) Average-cost Would amount be same NoYes NoYes YesNo Ending Inventory $ $ $ LINK TO TEXT LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Solution

Average-cost : 5,608

Working:

1600

5.1

8160

1000

5.44

5440

1400

5.61

7854

1700

5.78

9826

2000

5.95

11900

7700

43180

43180/7700 * 1000 = 5,608