Some of the information found on a detail inventory card, Ask an Expert

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Some of the information found on a detail inventory card for Slatkin Inc. for the first month of operations is as follows.
Received Issued, Balance,
Date No. of Units Unit Cost No. of Units No. of Units
Jan. 2 1200 $3.00 1200
Jan. 7 700 500
Jan. 10 600 $3.20 1100
Jan. 13 500 600
Jan. 18 1000 $3.30 300 1300
Jan. 20 1100 200
Jan. 23 1300 $3.40 1500
Jan. 26 800 700
Jan. 28 1600 $3.50 2300
Jan. 31 1300 1000

a) From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent and ending inventory to the nearest dollar.
1) First in, First Out (FIFO)
2) Last in, First Out (LIFO)
3) Average cost

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.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9986258

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