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# LoBianco Company FIFO, LIFO and Average Cost Determination

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(FIFO, LIFO and Average Cost Determination)

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

(a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average cost.

LIFO \$
Average Cost \$

(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO.

FIFO \$
LIFO \$

(c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.

Cost of goods sold \$

(d) In an inflationary period, which inventory method-FIFO, LIFO, average cost-will show the highest net income?