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P8-4 (LO3) EXCEL (Compute FIFO, LIFO, and Average-Cost) Hull Company\'s record o

ID: 2566425 • Letter: P

Question

P8-4 (LO3) EXCEL (Compute FIFO, LIFO, and Average-Cost) Hull Company's record of transactions concerning part for the month of April was as follows. lari Purchases Sales in April 1 (balance on hand) 100$5.00 400 5.10 300 5.30 200 5.35 600 5.60 200 5.80 April 5 12 300 200 800 150 ean 18 26 30 28 Instructions Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (a)

Explanation / Answer

(1) First-in, first-out (FIFO).

Date of Invoice No. Units Unit Cost Total Cost

April 30            200          $5.80    $1,160

April 26           150              5.60       840

                                                         $2,000

(2) Last-in, ±rst-out (LIFO).

Date of Invoice          No. Units             Unit Cost      Total Cost

April 1                                  100              $5.00          $ 500

April 4                                         250              5.10      1,275

                                                                                    $1,775

(3) Average-cost.

Date of Invoice No. Units    Unit Cost Total Cost

April 1                100                  $5.00      $ 500

April 4                400                5.10            2,040

April 11               300             5.30             1,590

April 18            200             5.35             1,070

April 26              600              5.60            3,360

April 30            200             5.80                1,160

Total Available 1,800                                     $9,720

Average cost per unit = $9,720 ÷ 1,800 = $5.40.

Inventory, April 30 = 350 X $5.40 = $1,890

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