Question

Question 1

Sandhill Co. uses a perpetual inventory system. Data for product E2-D2 includes the following purchases. Date Number of Units Unit Price May 7 48 $14 July 28 36 19 On June 1, Sandhill sold 24 units, and on August 27,36 more units. * Your answer is incorrect. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.) June 1 sale: $ 336 Aug. 27 sale: $ 23.720

Question 2

Question 3

Question 4

Answer 1

1) Average cost of goods sold in the sale= Cost of goods available for sale/Number of units

June 1 sale= $14*48/48= $14

Cost of goods available for sale for Aug 27= (48*$14)-(24*$14)+(36*$19)= $1020

Number of units available for sale= 48-24+36= 60 units

Aug. 27 sale= $1020/60= $17

Calculation of Cost of goods sold

Total sales units= 24+36= 60 units

FIFO= (48*$14+12*$19)= $900

LIFO= (36*$19+24*$14)= $1020

Weighted average= (24*$14+36*$17)= $948

2) Calculation of ending inventory

Ending inventory= Total units-Sales units

= 140-103= 37 units

Ending inventory using FIFO= (22*$115+15*$114)= $4240

Ending inventory using LIFO= (14*$110+23*$113)= $4139

Average cost per unit= Total cost of goods available for sale/Number of units available for sale

= $15876/140= $113.4

Ending inventory using average cost method= 37*$113.4= $4196

Calculation of cost of goods sold

Cost of goods sold using FIFO= Total cost of goods available for sale-Ending inventory using FIFO

= $15876-4240= $11636

Cost of goods sold using LIFO= Total cost of goods available for sale-Ending inventory using LIFO

= $15876-4139= $11737

Cost of goods sold using average cost method= Total cost of goods available for sale-Ending inventory using average cost method

= $15876-4196= $11680

3) Weighted average unit cost= Total cost of goods available for sale/Number of units available for sale

= $1004/100= $10.04

Ending units= Total units-Sales units

= 100-76= 24 units

Calculation of ending inventory

Ending inventory using FIFO= (24*$11)= $264

Ending inventory using LIFO= (24*$9)= $216

Ending inventory using average cost method= 24*$10.04= $241

4) Calculation of average unit cost

Date		Unit	Unit cost	Total cost
Sep 1	Inventory	11	$116	$1276
Sep 5	Sale	7	$116	(812)
	Average cost	4	$464/4= $116	$464
Sep 12	Purchases	44	$119	5236
	Average cost	48	$5700/48= $118.75	$5700
Sep 16	Sale	45	$118.75	(5343.75)
	Average cost	3	$356.25/3= $118.75	$356.25
Sep 19	Purchases	55	$120	6600
	Average cost	58	$6956.25/58= $119.935	$6956.25
Sep 26	Purchases	22	$121	2662
	Average cost	80	$9618.25/80= $120.228	$9618.25
Sep 29	Sale	51	$120.228	(6131.628)
	Ending inventory	29	$$3486.622/29= $120.228	$3486.622

September 1= $1276/11= $116

September 5= $464/4= $116

September 12= $5700/48= $118.75

September 16= $356.25/3= $118.75

September 19= $6956.25/58= $119.935

September 26= $9618.25/80= $120.228

September 29= $$3486.622/29= $120.228

Ending units= Total units-Sales units

= 132-103= 29 units

Calculation of ending inventory

Ending inventory using FIFO= (22*$121+7*$120)= $3502

Ending inventory using LIFO= (11*$116+18*$119)= $3418

Ending inventory using average cost method= 3486.622