LoBianco Company's record of transactions for the month of April was as follows.Purchases SalesApril 1 (balance on hand)600 @ $6.00 April 3500 @ $10.0041,500 @ $6.08 91,300 @ $10.008800 @ $6.40 11600 @ $11.00 131,200 @ $6.50 231,200 @ $11.00 21700 @ $6.60 27900 @ $12.00 29500 @ $6.79 4,500 5,300 Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost.In an inflationary period, which inventory method - FIFO or average-cost - will show the highest net income?

The inventory valuation is performed using various inventory methods as LIFO, FIFO and weighted…

Answered: oBianco Company's record of…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 9SPA: FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8A. All sales...

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LoBianco Company's record of transactions for the month of April was as follows.

Purchases		Sales
April 1 (balance on hand)	600 @ $6.00		April 3	500 @ $10.00
4	1,500 @ $6.08		9	1,300 @ $10.00
8	800 @ $6.40		11	600 @ $11.00
13	1,200 @ $6.50		23	1,200 @ $11.00
21	700 @ $6.60		27	900 @ $12.00
29	500 @ $6.79			4,500
	5,300

Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost.

In an inflationary period, which inventory method - FIFO or average-cost - will show the highest net income?

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