Lambert Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purc

Question

3 years ago

8

Lambert Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purc

hases and sales.
Purchases
Date
Units
Unit Cost
Sales Units
July 1 13 $115
July 6 9
July 11 6 $122
July 14 6
July 21 7 $132
July 27 6

Calculate average cost for each unit. (For calculation and answers purpose round unit costs to 2 decimal places, e.g. 15.25 and ending inventory values to 0 decimal places, e.g. 515.)

July 1
$
July 6
$
July 11
$
July 14
$
July 21
$
July 27
$

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average, and (3) LIFO. (For calculation and answers purpose round unit costs to 2 decimal places, e.g. 15.25 and ending inventory values to 0 decimal places, e.g. 515.)

Business

1 answer:

svetoff [14.1K] · Answer 1 · 2021-12-16T05:34:06+03:00

Answer:

Fifo Inventory $665

Moving Average= $ 606

Lifo Inventory $ 592

Explanation:

Purchases

Date Units Unit Cost Sales Units Fifo Inventory

July 1 13 $115

July 6 9

4 $115 $460

July 11 6 $122

July 14 6

4 $122 $488

July 21 7 $132

July 27 6

5 $ 133  $665

Moving Average Method

= Total Cost of Purchases/ No of items= 13*115 + 6*122+ 7*132/13+6+7

= 1495+ 732+ 924/26= 3151/26= 121. 192

No of units in the Ending Inventory= 5 * 121.192= $ 605.96

Purchases

Date Units Unit Cost Sales Units Lifo Inventory

July 1 13 $115

July 6 9

4 $115 $460

July 11 6 $122

July 14 6

4 $115 $460

July 21 7 $132

July 27 6

1 132 $132

4 $ 115 $460

5  $ 592