Concord Company’s record of transactions concerning part X for the month of April was as follows.Purchases SalesApril     1(balance on hand) 240 @ $5.50 April     5 4404  540 @ 5.60 12 34011  440 @ 5.80 27 1,08018  340 @ 5.90 28 15026  740 @ 6.20    30  340 @ 6.40   a) Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 4 decimal places, e.g. 2.7682.) b) Compute the inventory at April 30 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. (Round final answers to 0 decimal places, e.g. 6,548.)  (1)FIFO (2)LIFO (3)Average-costEnding Inventory $  $  $  c) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)  (1)FIFO (2)LIFO (3)Average-costEnding Inventory $  $  $

Question
Asked Dec 7, 2019
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Concord Company’s record of transactions concerning part X for the month of April was as follows.

Purchases
 
Sales
April     1 (balance on hand)   240  @  $5.50   April     5   440
4     540  @  5.60   12   340
11     440  @  5.80   27   1,080
18     340  @  5.90   28   150
26     740  @  6.20        
30     340  @  6.40      

a) Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 4 decimal places, e.g. 2.7682.)

 

b) Compute the inventory at April 30 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. (Round final answers to 0 decimal places, e.g. 6,548.)

   
(1)
FIFO
 
(2)
LIFO
 
(3)
Average-cost
Ending Inventory  
 
 

 

c) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)

   
(1)
FIFO
 
(2)
LIFO
 
(3)
Average-cost
Ending Inventory  
 
 
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Expert Answer

Step 1

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered

Step 2

Weighted Average Cost method is the cost method which computes the weighted average cost. Since, perpetual inventory are computed in units only, the weighted average cost will be computed by dividing the total purchases with the total units purchased which is $15666/2640=$5.9341.

Computation of total purchase cost and units purchased is as follows

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Inventory Additions |Units 240 540 Date 1-Apr|Opening balance 4-Apr Purchases 5-Apr 11-Apr|Purchases 12-Apr 18-Apr Purchases 26-Apr Purchases 27-Apr 28-Apr 30-Apr Purchases Total Purchases Transaction Rate Amount 1320 5.50 3024 5.60 440 5.80 2552 5.90 2006 340 740 4588 6.20 2176 340 6.40 2640 15666

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Step 3

The purchases and sales have b...

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b Computation of inventory Inventory Additions Sales Transaction Rate Amount Units Date Units 1-AprOpening balance 4-Apr Purchases 5-Apr 11-Apr Purchases 12-Apr 18-Apr Purchases 26-Apr Purchases 27-Apr| 28-Apr 30-Apr Purchases Total 240 5.50 1320 540 5.60 3024 440 2552 440 5.80 340 340 5.90 2006 740 6.20 4588 1080 150 340 6.40 2176 2640 2010

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