Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (compute fifo, lifo, and average-cost) pillsbury c

(Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerning part WA6 for the month...

Free

90.2K

Verified Solution

Question

Accounting

(Compute FIFO, LIFO, and Average-Cost) Pillsbury Company'srecord of transactions concerning part WA6 for the month ofSeptember was as follows.

Purchases
September1(balance on hand)300@$12.00
3200@$12.10
12300@$12.25
16300@$12.30
22500@$12.30
26300@$12.40
Sales
September4400
17600
27300
30200

Instructions:

(a) Compute the inventory at September 30 on each of thefollowing bases. Assume that perpetual inventory records are keptin units only. Carry unit cost to the nearest cent.

(1) First-in, first-out (FIFO).

(2)Last-in, Last-out (LIFO).

(3) Average cost.

(b) If the perpetual inventory record is kept in dollars, andcosts are computed at the time of each withdrawal, what amountwould be shown as ending inventory in (1),(2), and (3) above? Carryaverage unit costs to four decimal places.

Clearly Mark Your Answers

Answer & Explanation Solved by verified expert
3.7 Ratings (420 Votes)

Ans. A FIFO :
Purchase Cost of goods sold Balance
Date Quantity Rate Total cost Quantity Rate Total cost Quantity Rate Total cost
1-Sep 300 $12.00 $3,600.00
3-Sep 200 $12.10 $2,420 300 $12.00 $3,600.00
200 $12.10 $2,420
4-Sep 300 $12.00 $3,600.00
100 $12.10 $1,210 100 $12.10 $1,210
12-Sep 300 12.25 3675 100 $12.10 $1,210
300 12.25 3675
16-Sep 300 12.30 3690 100 $12.10 $1,210
300 12.25 3675
300 12.30 3690
17-Sep 100 $12.10 $1,210
300 12.25 3675
200 12.30 2460 100 12.30 1230
22-Sep 500 12.30 6150 100 12.30 1230
500 12.30 6150
26-Sep 300 12.40 3720 100 12.30 1230
500 12.30 6150
300 12.40 3720
27-Sep 100 12.30 1230
200 12.30 2460 300 12.30 3690
300 12.40 3720
30-Sep 200 12.30 2460 100 12.30 1230
300 12.40 3720
Total Cost of goods sold $18,305 Ending inventory $4,950
*In FIFO method the units that have purchased first are released the first one.
Ans. B Perpetual LIFO:
Purchase Cost of goods sold Balance
Date Quantity Rate Total cost Quantity Rate Total cost Quantity Rate Total cost
1-Sep 300 $12.00 $3,600.00
3-Sep 200 $12.10 $2,420 300 $12.00 $3,600.00
200 $12.10 $2,420
4-Sep 200 $12.10 $2,420
200 $12.00 $2,400.00 100 $12.00 $1,200.00
12-Sep 300 12.25 3675 100 $12.00 $1,200
300 12.25 3675
16-Sep 300 12.30 3690 100 $12.00 $1,200
300 12.25 3675
300 12.30 3690
17-Sep 300 12.30 3690
300 12.25 3675 100 $12.00 $1,200
22-Sep 500 12.30 6150 100 12.00 1200
500 12.30 6150
26-Sep 300 12.40 3720 100 12.00 1200
500 12.30 6150
300 12.40 3720
27-Sep 300 12.40 3720 100 12.00 1200
500 12.30 6150
30-Sep 200 12.30 2460 100 12.00 1200
300 12.30 3690
Total Cost of goods sold $18,365 Ending inventory $4,890
*In LIFO method the units that have purchased last, are released the first one.
Ans. C Weighted Average
Purchase Cost of goods sold Balance
Date Quantity Rate Total cost Quantity Rate Total cost Quantity Rate Total cost
1-Sep 300 $12.00 $3,600.00
3-Sep 200 $12.10 $2,420 500 $12.0400 $6,020.00
4-Sep 400 $12.0400 $4,816 100 $12.0400 $1,204
12-Sep 300 12.25 3675 400 $12.1975 $4,879
16-Sep 300 12.30 3690 700 $12.2414 $8,569
17-Sep 600 $12.2414 $7,345 100 $12.2414 $1,224
22-Sep 500 12.30 6150 600 $12.2902 $7,374
26-Sep 300 12.40 3720 900 $12.3268 $11,094
27-Sep 300 $12.3268 $3,698 600 $12.3268 $7,396
30-Sep 200 $12.3268 $2,465 400 $12.3268 $4,931
Total Cost of goods sold $18,324 Ending inventory $4,931
*Weighted average rate is calculated by using the formula of (Total available balance / Total units available).

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating...

Finance
Q

Calculate the pH of each of the following solutions: a. 0.00184M H+ b. 6.23 x 10-4M HCl c....

Chemistry
Q

Give a research proposal for a dairy industry strategy to penetrate new market.

General Management
Q

Selected financial statement information and additional data for Jasmine Co. is presented below. Prepare a statement...

Accounting
Q

3 For Andrew s graph write a next to the 1st and 2nd transformations in...

Geometry
Q

O none of these answers Question 7 Find max point for f x x 6x...

Calculus
Q

Given f x 9x and g x 9x 7 find the following expressio a fog...

Algebra
Q

George Thomas plans to open a Roth Ira and put $5,000 into his account at...

Accounting
Q

Dr. Smith's clinic has been running from long time. The information below summarizes how things...

Accounting
Q

Due to erratic Sales of its sole product- a high capacity battery for laptop computers...

Accounting
Q

What specific actions have you and your co-managers taken to develop core competencies or competitive...

Accounting
Q

On January 1,2017, Land's End Construction purchased a used truck for $38,500. A new motor...

Accounting