Marigold Company’s record of transactions concerning part X for the month of Apr
ID: 2573356 • Letter: M
Question
Marigold Company’s record of transactions concerning part X for the month of April was as follows.
Purchases
Sales
April 1
(balance on hand)
310
@
$6.20
April 5
510
4
610
@
6.32
12
410
11
510
@
6.57
27
1,220
18
410
@
6.63
28
150
26
810
@
6.94
30
410
@
7.19
Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only-Average-cost per unit $
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. Ending Inventory $
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? Ending Inventory
Purchases
Sales
April 1
(balance on hand)
310
@
$6.20
April 5
510
4
610
@
6.32
12
410
11
510
@
6.57
27
1,220
18
410
@
6.63
28
150
26
810
@
6.94
30
410
@
7.19
Explanation / Answer
Ans. calculation of Average unit cost per unit, stock control on the basis of Average cost method
Date Purchase Sales Ending inventory
qty price total qty price total qty price total
apr. 1 310 6.20 $1922 - - - 310 6.20 $1922
apr .4 610 6.32 $3855.2 - - - 920 6.27 $5772.2
(310+610) (5772.2/920) ($1922+3855.2)
apr 5 - - - -510 6.27 3197.70 410 6.27 $2570.70
apr 11 +510 6.57 $3350.70 - - - 920 6.44 $5921.40
apr. 12 - - - -410 6.44 2640.40 510 6.43 $3281
apr. 18 +410 6.63 $2718.30 - - - 920 6.52 $5999.30
apr 26 +810 6.94 $5621.40 - - - 1730 6.72 $11621
apr 27 - - - -1220 6.72 8198.40 510 6.72 3422.6
apr 28 - - - -150 6.72 1008 360 6.72 2414.60
apr 30 +410 7.19 $2947.90 - - - 770 6.96 $5362.50
2. calculation of unit cost per unit, stock control on the basis of FIFO cost method
Date Purchase Sales Ending inventory
qty price total qty price total qty total
apr. 1 310 6.20 $1922 - - - 310 $1922
apr .4 610 6.32 $3855.2 - - - 920 $5772.2 (310 for 6.20, 610 for 6.32)
apr 5 - - - -310 6.20 1922
-200 6.32 1264 410 $2591.20 (410 for 6.32)
apr 11 +510 6.57 $3350.70 - - - 920 $5941.90 (410,6.32 and 510,6.57)
apr. 12 - - - -410 6.32 2591.20 510 $3350.70(510, 6.57)
apr. 18 +410 6.63 $2718.30 - - - 920 $6069 (510, 6.57 and 410, 6.30)
apr 26 +810 6.94 $5621.40 - - - 1730 $11690.40(510,6.57,410,6.30,810,6.94)
apr 27 - - - -510 6.57 3350.70
- - - -410 6.30 2718.30
-300 6.94 2082 510 $3539.40 (510 @6.94)
apr 28 - - - -150 6.94 1041 360 $2498.40 (360 @6.94)
apr 30 +410 7.19 2947.90 - - - 770 $5446.30 (360, 6.94, 410, 7.19)
3. calculation of unit cost per unit, stock control on the basis of LIFO cost method
Date Purchase Sales Ending inventory
qty price total qty price total qty total
apr. 1 310 6.20 $1922 - - - 310 $1922
apr .4 610 6.32 $3855.2 - - - 920 $5772.2 (310 for 6.20, 610 for 6.32)
apr 5 - - - -510 6.32 3223.20 410 $2549 (310, 6.20 and 100 for 6.32
apr 11 +510 6.57 $3350.70 - - - 920 $5899.70 (310,6.20,100,6.32,510,6.57)
apr. 12 - - - -410 6.57 2693.70 510 3206
(310,6.20, 100,6.32,100, 6.57)
apr. 18 +410 6.63 $2718.30 - - - 920 5924.30
(310, 6.20, 100, 6.32, 100,6.57 and 410,6.63)
apr 26 +810 6.94 $5621.40 - - 1730 $11545.70
(310,6.20, 100,6.32,100,6.57,410,6.63, 810,694)
apr 27 - - - -810 6.94 5621.40
- - - -410 6.63 2718.30 3206 (310,6.20, 100, 6.32,100,6.57)
apr 28 - - - -100 6.57 657
-50 6.32 316 $2233 (310,620,50,6.32)
apr 30 +410 7.19 2947.90 - - - $5180.90(310, 6.20, 50, 6.32, 410,719)
Ending inventory value as per average method $5362.50
Ending inventory value as per FIFO method $5446.30
Ending inventory value as per LIFO method $5180.90
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