Received Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units

Question

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

(a1)

Calculate average-cost per unit.

Calculate FIFO

Calculate LIFO

b) 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?
Explain and compute

Some of the information found on a detail inventory card for Slatkin 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 1,630 $3.47 1,630 7 1,130 500 10 1,030 3.70 1,530 13 930 600 18 1,430 3.81 730 1,300 20 1,100 200 23 1,730 3.93 1,930 26 1,230 700 28 2,030 4.04 2,730 31 1,730 1,000

Explanation / Answer

Received. Issued. Balance

W1 = (500*3.47+1030*3.7)/1530=3.625

W2= (600*3.63+1430*3.81)/2030=3.76

W3= (200*3.76+1730*3.93)/1930=3.91

W4=(709*3.91+2030*4.04)/2730=4.007

A

1. Under average cost the ending inventory cost is 1000*4.007=$4007

2.under FIFO ending inventory is the latest cost and consequently 1000units left with at the end of month are part of those 2030 units bought at Jan 28,@4.04 per unit and ending inventory cost is 1000*4.04=$4040

3. Under LIFO from table ending inventory cost is $3871.

B.

As shown from table if this is kept in dollar there is no difference in cost of ending inventory under LIFO .same is the case with other method too

Date no. Of
Units unit
Cost amount no of
Units amountLIFO Units amount
LIFO
Units amount
LIFO
Dollars weighted
Average
Cost/unit Jan2 1630 3.47 $5656 - - 1630 500*3.47 5656 3.47 Jan7 1130 3921 500 500*3.47 1735 3.47 10 1030 3.70 3811 1530 500*3.47
1030*3.70 5546 3.625(w1) 13 930 3441 600 500*3.47
100*3.7 2105 3.62 18 1430 3.81 5448 730 2781 1300 500*3.47
100*3.7
700*3.81 4772 3.76(w2) 20 1100 700*3.81
100*3.7
300*3.47=
4078 200 200*3.47 694 3.76 23 1730 3.93 6799 1930 200*3.47
1730*3.93 7492 3.91(w3) 26 1230 4834 700 200*3.47
500*3.93 2658 3.91 28 2030 4.04 8201 2730 200*3.47
500*3.93
2030*4.04 10859 4.007(w4) 31 1730 6980 1000 200*3.47
500*3.93
300*4.04 3871 4007

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