Keyser Company's record of transactions for the month of April is as follows.

Instructions
a. Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) LIFO and (2) average-cost.
b. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) LIFO.
c. Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
d. In an inflationary period, which inventory method-FIFO, LIFO, or average-cost-will show the highest net income?
 

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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 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

Answer rating: 100% (QA)

Apr 2 Purchased 13300 of merchandise on credit from Negi Company invoice dated April 2 terms 2y10 ny60 3 Sold merchandise on credit to Brooke Sledd Invoice No 760 for 3000 cost is 2000 3 Purchased 138... View the full answer