(Compute FIFO, LIFO, and Average-Cost) Pillsbury Company'srecord of transactions concerning part WA6 for the month ofSeptember was as follows.
| | Purchases | | |
|---|
| September | 1 | (balance on hand) | 300@ | $12.00 |
| 3 | | 200@ | $12.10 |
| 12 | | 300@ | $12.25 |
| 16 | | 300@ | $12.30 |
| 22 | | 500@ | $12.30 |
| 26 | | 300@ | $12.40 |
| Sales | |
|---|
| September | 4 | 400 |
| 17 | 600 |
| 27 | 300 |
| 30 | 200 |
Instructions:
(a) Compute the inventory at September 30 on each of thefollowing bases. Assume that perpetual inventory records are keptin units only. Carry unit cost to the nearest cent.
(1) First-in, first-out (FIFO).
(2)Last-in, Last-out (LIFO).
(3) Average cost.
(b) If the perpetual inventory record is kept in dollars, andcosts are computed at the time of each withdrawal, what amountwould be shown as ending inventory in (1),(2), and (3) above? Carryaverage unit costs to four decimal places.
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