Exercise 2-2

The following A. B. Murphy Company data show purchase and sales transactions for the month of April. A. B. Murphy uses a perpetual inventory system.

Date	Activities	Units Purchased (at cost)	Units Sold (at retail)
Apr 1	Beginning inventory..............................	065 units @ $40/unit
Apr 8	Purchase.............................................	225 units @ $45/unit
Apr 12	Sales...................................................		235 units @ 75/unit
Apr 19	Purchase.............................................	050 units @ $50/unit
Apr 23	Purchase.............................................	125 units @ $55/unit	0
Apr 27	Sales...................................................	________	95 units @ 80/unit
	Totals..................................................	465 units	330 units

Compute the following:

1.Cost assigned to ending inventory, using any three of the following four methods. Compute costs using all four methods for distinguished performance. Round per unit costs to three decimal places and inventory balances to the nearest dollar.

a. FIFO.

b. LIFO.

c. Weighted average.

d.Specific identification (see note below).

FIFO Perpetual

Date

Goods Purchased

Cost of Goods Sold

Inventory Balance

LIFO Perpetual

Date

Goods Purchased

Cost of Goods Sold

Inventory Balance

Weighted Average Perpetual

Date

Goods Purchased

Cost of Goods Sold

Inventory Balance

Specific Identification

Note: The April 12 sale comprised 55 units from beginning inventory and 180 units from the April 8 purchase. The April 27 sale comprised 30 units from the April 19 purchase and 65 units from the April 23 purchase.

Date

Goods Purchased

Cost of Goods Sold

Inventory Balance

2.Gross profit, using FIFO, LIFO, weighted average, and specific identification.

FIFO

LIFO

Weighted Average

Specific Identifi-cation