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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
(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
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
(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
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
(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
*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
Assuming costs are not computed for each withdrawal:
1. First-in, first-out.
Date of Invoice
No. Units
Unit Cost
Total Cost
2. Average cost.
Cost of Part X available.
Date of Invoice
No. Units
Unit Cost
Total Cost
Sept. 1
100
$5.00
$ 500
*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
*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. 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
*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
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
(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. 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
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
*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
(b)
Perpetual FIFO
Same as periodic:
NT$87,100
(c)
Periodic LIFO
(d)
Perpetual LIFO
Date
Purchased
Sold
Balance
1/1
1,000 X NT$12
=
NT$12,000
*PROBLEM 8.9 (Continued)
(e)
Periodic weighted-average
1,000 X NT$12 =
NT$ 12,000
(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
