John Adams Company prime s record of transactions

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John Adams Company prime s record of transactions …

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Darshita6.14K 0 Comments

a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using

(1) LIFO and (2) average

Inventory Value
Lifo 1008 6084
Avg. Cost 1008 6693.12

2 Value of the inventory under FIFO and LIfo

Inventory Value
Lifo 1008 6084
FIFO 1008 7261.92

3

Cost of Goods Sold Under FIFO

=43437.6

4

In the inflamatory period which method give highest Net income

Answer: FIFO

working Notes for the above answer

FIFO
Opeaning
April Purchase Sales Closing
Unit Cost Value Unit Cost Value Unit Cost Value
1 864 6 5184
3 720 8.5 6120 144 6 864
4 2160 6.28 13564.8 144 6 864
2160 6.28 13564.8
8 1152 6.59 7591.68 144 6 864
2160 6.28 13564.8
1152 6.59 7591.68
9 2016 8.5 17136
11 864 10.06 8691.84 576 6.59 3795.84
13 1728 6.94 11992.32 576 6.59 3795.84
1728 6.94 11992.32
21 1008 7.09 7146.72 576 6.59 3795.84
1728 6.94 11992.32
1008 7.09 7146.72
23 1728 10.06 17383.68
27 1296 12.5 16200 288 7.09 2041.92
29 720 7.25 5220 288 7.09 2041.92
720 7.25 5220
Total 7632 50699.52 6624 65531.52 1008 7261.92
Cost Of
goods sold		 6624 43437.6
(50669.52-
7261.62)
LIFO
Opeaning
April Purchase Sales Closing
Unit Cost Value Unit Cost Value Unit Cost Value
1 864 6 5184
3 720 8.5 6120 144 6 864
4 2160 6.28 13564.8 144 6 864
2160 6.28 13564.8
8 1152 6.59 7591.68 144 6 864
2160 6.28 13564.8
1152 6.59 7591.68
9 2016 8.5 17136 144 6 864
11 864 10.06 8691.84 432 6.28 2712.96
13 1728 6.94 11992.32 144 6 864
432 6.28 2712.96
1728 6.94 11992.32
21 1008 7.09 7146.72 144 6 864
432 6.28 2712.96
1728 6.94 11992.32
1008 7.09 7146.72
23 1728 10.06 17383.68 144 6 864
27 1296 12.5 16200 144 6.28 904.32
29 720 7.25 5220 144 6 864
144 6.28 904.32
720 7.25 5220
Total 7632 50699.52 6624 65531.52 1008 6084

 
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