From these data compute the ending inventory on each of the following bases. Assume that perpetual… 1 answer below »

(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 as follows.

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

January 2

1,200

$3.00

1,200

7

700

500

10

600

3.20

1,100

13

500

600

18

1000

3.30

300

1,300

20

1,100

200

23

1300

3.40

1,500

26

800

700

28

1600

3.50

2,300

31

1,300

1,000

Instructions

(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 unit 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 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? Explain and compute.

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