chapter 8?

Question

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

  

1,200

  

$3.00

  

  

1,200

7

  700

  500

10

  600

 3.20

1,100

13

  500

  600

18

1,000

 3.30

  300

1,300

20

1,100

  200

23

1,300

 3.40

1,500

26

  800

  700

28

1,600

 3.50

2,300

31

1,300

1,000

Instructions

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. (Round average unit costs to four decimal places.)

Answer 1

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