Some of the information found on a detail inventory card for Sage Inc. for the...
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Accounting
Some of the information found on a detail inventory card for Sage 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
1,600
$4.65
1,600
7
1,100
500
10
1,000
4.96
1,500
13
900
600
18
1,400
5.12
700
1,300
20
1,100
200
23
1,700
5.27
1,900
26
1,200
700
28
2,000
5.43
2,700
31
1,700
1,000
1.
Calculate average-cost per unit.
2. From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost.
3. 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? What amount would be shown as ending inventory?
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