# Managerial Accounting

(Compute FIFO, LIFO, and average Cost) some of the information found on a detail inventory card for SLATKIN Inc, for the first month of operations is a follow.

Date No. of Units Unit cost No. of Units No. of Units

January 2 1,200 \$3.00 1,200

7 700 500

10 600 3.20 1,100

13 500 600

18 1,000 3.30 300 1,300

20 1,100 200

23 1,300 3.40 1,500

26 800 700

28 1,600 3.50 2,300

31 1,300 1,000

a) From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry units’ costs to the nearest cent and ending inventory to the nearest dollar.

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

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

(3) Average cost.

b) If the personal inventory records is kept in dollars, are computed at the time of each withdrawal, would the amounts shows as ending inventory in (1), (2), and (3) above be the same?

Explain and compute. (Round average unit cost to four decimal places.)

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