PROBLEM 8.4 (Continued)
3. Average cost.
Cost of Part X available.
Date of Invoice
No. Units
Unit Cost
Total Cost
April 1
100
R$5.00
R$ 500
April 4
400
April 11
April 18
200
April 26
600
April 30
200
(b) Assuming costs are computed for each withdrawal:
1. Specific identification.
2. First-in, first out.
PROBLEM 8.4 (Continued)
3. Average cost.
Purchased
Sold
Balance
Date
No. of
units
Unit
cost
No. of
units
Unit
cost
No. of
units
Unit
cost*
Amount
April 1
100
R$5.00
100
R$5.0000
R$ 500.00
April 4
400
5.10
500
5.0800
2,540.00
April 5
200
5.0800
1,016.00
April 11
300
5.30
500
5.2120
2,606.00
April 12
300
5.2120
1,563.60
April 18
200
5.35
500
5.2672
2,633.60
April 26
600
5.60
1,100
5.4487
5,993.60
April 27
300
5.4487
1,634.64
April 28
150
5.4487
April 30
200
5.80
350
5.6495
1,977.31
PROBLEM 8.5
(a) Assuming costs are not computed for each withdrawal (units received,
5,700, minus units issued, 4,700, equals ending inventory at 1,000 units):
1. First-in, first-out.
2. Average cost.
Cost of goods available:
Date of Invoice
No. Units
Unit Cost
Total Cost
Jan. 2
1,200
¥3.00
¥ 3,600
Jan. 10
600
3.20
1,920
Jan. 18
1,000
3.30
3,300
Jan. 23
1,300
3.40
4,420
Jan. 28
1,600
3.50
5,600
(b) Assuming costs are computed at the time of each withdrawal:
Under FIFO—Yes. The amount shown as ending inventory would be
PROBLEM 8.5 (Continued)
The calculations to determine the inventory on this basis are given below.
1. First-in, first-out.
2. Average cost.
Received
Issued
Balance
Date
No. of
units
Unit
cost
No. of
units
Unit
cost
No. of
units
Unit
cost*
Amount
Jan. 2
1,200
¥3.00
1,200
¥3.0000
¥3,600
Jan. 7
700
$3.0000
500
3.0000
1,500
Jan. 13
500
600
3.1091
1,865
Jan. 18
1,000
300
1,300
3.2281
4,197
Jan. 23
1,300
3.3773
5,066
Jan. 26
800
700
3.3773
2,364
Jan. 31
1,300
1,000
3.4626
3,463
PROBLEM 8.6
(a)
Beginning inventory …………………
1,000
Purchases (2,000 + 3,000) ………….
5,000
Units available for sale ……………..
6,000
Sales (2,500 + 2,200) …………………
4,700
Goods on hand …………………………
1,300
Periodic FIFO
1,000 X €12 =
€12,000
2,000 X €18 =
1,700 X €23 =
(b)
Perpetual FIFO
(c)
Periodic weighted-average
1,000 X €12 =
2,000 X €18 =
3,000 X €23 =
(d)
Perpetual moving average
Date
Purchased
Sold
Balance
1/1
1,000 X €12 =
€12,000
2/4
2,000 X €18 = €36,000
3,000 X €16 =
48,000
2/20
2,500 X €16 =
€40,000
500 X €16 =
8,000
4/2
3,000 X €23 = €69,000
3,500 X €22a =
77,000
€88,400
3,000 X €23 = 69,000
*PROBLEM 8.7
(a)
Purchases
Total Units
Sales
Total Units
Sept. 1 (balance on hand)
100
Sept. 5
300
Sept. 4
400
Sept. 12
200
Sept. 11
300
Sept. 27
800
Sept. 18
200
Sept. 28
Sept. 30
200
Total units
Total units sold
(1,450)
Assuming costs are not computed for each withdrawal:
1. First-in, first-out.
Date of Invoice
No. Units
Unit Cost
Total Cost
Sept. 30
$5.80
$1,160
Sept. 26
840
2. Average cost.
Cost of Part X available.
Date of Invoice
No. Units
Unit Cost
Total Cost
Sept. 1
100
$5.00
$ 500
Sept. 4
400
Sept. 11
300
Sept. 18
200
Sept. 26
600
Sept. 30
200
*PROBLEM 8.7 (Continued)
3. Under LIFO,
100 units @ 5.00 = 500
(b) Assuming costs are computed for each withdrawal:
1. First-in, first out.
2. Average cost.
Purchased
Sold
Balance
Date
No. of
units
Unit
cost
No. of
units
Unit
cost
No. of
units
Unit
cost*
Amount
Sept. 1
100
$5.00
100
$5.0000
$ 500.00
Sept. 4
400
5.10
500
5.0800
2,540.00
Sept. 5
200
5.0800
1,016.00
Sept. 11
300
5.30
500
5.2120
2,606.00
Sept. 12
300
5.2120
1,563.60
Sept. 18
200
5.35
500
5.2672
2,633.60
Sept. 26
600
5.60
1,100
5.4487
5,993.60
Sept. 27
300
5.4487
1,634.64
Sept. 28
150
5.4487
817.33
Sept. 30
200
5.80
350
5.6495
1,977.33
*PROBLEM 8.7 (Continued)
Inventory Sept. 30 is $1,915.
*The balance on hand is listed in detail after each transaction.
3. Note: If LIFO kept in units and dollars, LIFO inventory would be:
Purchased
Sold
Balance*
Date
No. of
units
Unit
cost
No. of
units
Unit
cost
No. of
units
Unit
cost
Amount
Sept. 1
100
$5.00
100
$5.00
$ 500
Sept. 4
400
5.10
100
5.00
2,540
400
5.10
Sept. 5
300
$5.10
100
5.00
100
5.10
Sept. 11
300
5.30
100
5.00
100
5.10
2,600
300
5.30
Sept. 12
200
5.30
100
5.00
100
5.10
1,540
100
5.30
Sept. 18
200
5.35
100
5.00
100
5.10
2,610
100
5.30
200
5.35
Sept. 26
600
5.60
100
5.00
100
5.10
100
5.30
5,970
200
5.35
600
5.60
Sept. 27
600
5.60
800
5.35
100
5.00
100
5.10
1,540
100
5.30
Sept. 28
5.30
100
5.00
150
50
5.10
50
5.10
Sept. 30
200
5.80
100
5.00
50
5.10
200
5.80
*PROBLEM 8.8
(a) Assuming costs are not computed for each withdrawal (units received,
5,700, minus units issued, 4,700, equals ending inventory at 1,000 units):
1. First-in, first-out.
Date of Invoice
No. Units
Unit Cost
Total Cost
Jan. 28
1,000
$3.50
$3,500
1,000
$3.00
$3,000
3. Average cost.
Cost of goods available:
Date of Invoice
No. Units
Unit Cost
Total Cost
Jan. 2
1,200
$3.00
$ 3,600
Jan. 10
600
3.20
1,920
Jan. 18
1,000
3.30
3,300
Jan. 23
1,300
3.40
4,420
Jan. 28
1,600
3.50
5,600
(b) Assuming costs are computed at the time of each withdrawal:
*PROBLEM 8.8 (Continued)
Under Average Cost—No. A new average cost would be computed
The calculations to determine the inventory on this basis are given below.
1. First-in, first-out.
2. Last-in, first-out.
Received
Issued
Balance
Date
No. of
units
Unit
cost
No. of
units
Unit
cost
No. of
units
Unit
cost*
Amount
Jan. 2
1,200
$3.00
1,200
$3.00
$3,600
Jan. 7
700
$3.00
500
3.00
1,500
Jan. 10
600
3.20
500
3.00
600
Jan. 13
500
3.20
500
3.00
100
3.20
Jan. 18
1,000
3.30
300
3.30
500
3.00
100
4,130
700
3.30
Jan. 20
700
3.30
100
3.20
300
3.00
200
3.00
600
Jan. 23
1,300
3.40
200
3.00
5,020
1,300
3.40
Jan. 26
800
3.40
200
500
3.40
Jan. 28
1,600
3.50
200
3.00
500
3.40
7,900
1,600
Jan. 31
1,300
3.50
200
3.00
500
3.40
3,350
300
Inventory, January 31 is $3,350.
*PROBLEM 8.8 (Continued)
3. Average cost.
Received
Issued
Balance
Date
No. of
units
Unit
cost
No. of
units
Unit
cost
No. of
units
Unit
cost*
Amount
Jan. 2
1,200
$3.00
1,200
$3.0000
$3,600
Jan. 7
700
$3.0000
500
3.0000
1,500
Jan. 10
600
3.20
1,100
3.1091
3,420
Jan. 13
500
600
3.1091
1,865
Jan. 18
300
1,300
3.2281
4,197
Jan. 20
1,100
200
3.2281
646
Jan. 23
1,300
3.40
1,500
3.3773
5,066
Jan. 26
800
700
3.3773
2,364
Jan. 28
1,600
3.50
2,300
3.4626
7,964
Jan. 31
1,300
1,000
3.4626
3,463
*PROBLEM 8.9
(a)
Beginning inventory ………………….
1,000
Purchases (2,000 + 3,000) ………….
5,000
Units available for sale ……………..
6,000
Sales (2,500 + 2,200) …………………
4,700
Goods on hand …………………………
1,000 X NT$12 =
2,000 X NT$18 =
1,700 X NT$23 =
4,700
NT$87,100
(b)
Perpetual FIFO
Same as periodic:
NT$87,100
(c)
Periodic LIFO
3,000 X NT$23 =
1,700 X NT$18 =
4,700
NT$99,600
(d)
Perpetual LIFO
Date
Purchased
Sold
Balance
1/1
1,000 X NT$12
=
NT$12,000
2/4
2,000 X NT$18 = NT$36,000
1,000 X NT$12
2,000 X NT$18
2/20
2,000 X NT$18
=
4/2
3,000 X NT$23 = NT$69,000
3,000 X NT$23
11/4
2,200 X NT$23
=
*PROBLEM 8.9 (Continued)
(e)
Periodic weighted-average
1,000 X NT$12 =
NT$ 12,000
2,000 X NT$18 =
3,000 X NT$23 =
(f)
Perpetual moving-average
Date
Purchased
Sold
Balance
1/1
1,000 X NT$12 =
NT$12,000
2/4
2,000 X NT$18 = $36,000
3,000 X NT$16 =
48,000
2/20
2,500 X NT$16 =
NT$40,000
8,000
4/2
3,000 X NT$23 = $69,000
3,500 X NT$22a =
11/4
2,200 X NT$22 =
1,300 X NT$22 =
NT$88,400
3,000 X NT$23 = 69,000