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10 May, 17:40

Lambert Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.

Purchases

Date

Units

Unit Cost

Sales Units

July 1 13 $115

July 6 9

July 11 6 $122

July 14 6

July 21 7 $132

July 27 6

Calculate average cost for each unit. (For calculation and answers purpose round unit costs to 2 decimal places, e. g. 15.25 and ending inventory values to 0 decimal places, e. g. 515.)

July 1

$

July 6

$

July 11

$

July 14

$

July 21

$

July 27

$

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average, and (3) LIFO. (For calculation and answers purpose round unit costs to 2 decimal places, e. g. 15.25 and ending inventory values to 0 decimal places, e. g. 515.)

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Answers (1)
  1. 10 May, 20:09
    0
    Fifo Inventory $665

    Moving Average = $ 606

    Lifo Inventory $ 592

    Explanation:

    Purchases

    Date Units Unit Cost Sales Units Fifo Inventory

    July 1 13 $115

    July 6 9

    4 $115 $460

    July 11 6 $122

    July 14 6

    4 $122 $488

    July 21 7 $132

    July 27 6

    5 $ 133 $665

    Moving Average Method

    = Total Cost of Purchases / No of items = 13*115 + 6*122 + 7*132/13+6+7

    = 1495 + 732 + 924/26 = 3151/26 = 121. 192

    No of units in the Ending Inventory = 5 * 121.192 = $ 605.96

    Purchases

    Date Units Unit Cost Sales Units Lifo Inventory

    July 1 13 $115

    July 6 9

    4 $115 $460

    July 11 6 $122

    July 14 6

    4 $115 $460

    July 21 7 $132

    July 27 6

    1 132 $132

    4 $ 115 $460

    5 $ 592
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