Exercise 8-11
Splish Company’s record of transactions for the month of April was
as follows.
Purchases
Sales
April 1
(balance on...
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Accounting
Exercise 8-11
Splish Company’s record of transactions for the month of April wasas follows.
Purchases
Sales
April 1
(balance on hand)
1,680
@
$6.00
April 3
1,400
@
$10.00
4
4,200
@
6.08
9
3,920
@
10.00
8
2,240
@
6.40
11
1,680
@
11.00
13
3,360
@
6.50
23
3,360
@
11.00
21
1,960
@
6.60
27
2,520
@
12.00
29
1,400
@
6.79
12,880
14,840
Assuming that periodic inventory records are kept in unitsonly, calculate the average-cost per unit. (Roundanswer to 2 decimal places, e.g. 2.76.)
Average-cost per unit
$ per unit
Assuming that periodic inventory records are kept in unitsonly, compute the inventory at April 30 using LIFO andaverage-cost. (Round answer to 0 decimal places, e.g.2,760.)
LIFO
$
Average-cost
$
Assuming that perpetual inventory records are kept in dollars,determine the inventory using (1) FIFO and (2) LIFO.(Round answer to 0 decimal places, e.g.2,760.)
(1) FIFO
(2) LIFO
Inventory
$
$
Compute cost of goods sold assuming periodic inventoryprocedures and inventory priced at FIFO. (Round answerto 0 decimal places, e.g. 2,760.)
Cost of goods sold
$
In an inflationary period, which inventory method—FIFO, LIFO,average-cost—will show the highest net income?
Average-cost FIFO LIFO
inventory method will show the highest net income.
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