Question

Jordan Company is a manufacturing firm. Presented below is information concerning one of its products:

Data given Unit Cost $20 $25 1-Jan Beginning inventory 12-Feb Purchase 2-Mar Sale 18-Apr Purchase 31-May Sale Units 4,190 4,630 3,640 5,950 5,180 $38 $28 $40 Total Units Sold 8,820

Compute the cost of goods sold under the following situations: Periodic system, FIFO cost flow Perpetual system, FIFO cost flow Periodic system, LIFO cost flow Perpetual system, LIFO cost flow Periodic system, weighted-average cost flow Perpetual system, moving-average cost flow Your answers must be submitted in an Excel file and must show all calculations used to arrive at the final answers.

Answer 1

Question Periodic system, FIFO Cost flow Perpectual system, FIFO Cost flow Periodic system, LIFO Cost flow Perpectual system, LIFO Cost flow Periodic system, Weighted Average Cost flow Perpectual system, Moving Average Cost flow Total cost of Goods available for sale 366,150 366,150 366,150 366,150 366,150 366,150 Ending Cost of Inventory Goods Sold $ 166,600 $ 199,550 $ 166,600 $ 199,550 $ 127,800 $ 238,350 $ 130,110 $ 236,040 $ 147,501 $ 218,650 $ 151,715 $ 214,435 Notes: Cost of Goods availabe for sale = Beginning inventory + Purchases Cost of Goods Sold = Cost of Goods available for sale - Ending inventory

Working Notes Cost of Goods available for sale Date Tranasaction Quantity Cost per unit Total cost 01-Jan Beginning inventory 4190 $ 20 $ 83,800 12-Feb Purchase 4630$ 25 $ 115,750 18-Apr Purchase 5950 $ 28 $ 166,600 Total cost of Goods available for sale $ 366,150 Computation of Closing Inventory in Units : Units 4190 4630 5950 Particulars Beginning Inventory Purchases, 1st Jan Purchases, 12 th Feb Total No. of Units available for sale Less : Sales, 2 nd March Sales, 31st May Ending Inventory 14770 3640 5180 5950

Periodic system, FIFO cost flow Ending Inventory under First in First out( FIFO) Periodic method Units Unit Cost 5950 $ 28.00 Total Cost $ 166,600 Most recent Cost, from purchases - 18 th April Ending Inventory 5950 $ 166,600 Perpectual system, FIFO cost flow Ending Inventory under First in First out FIFO) Perpetual method Goods Purchased Cost per Cost of Goods Sold Cost of Goods # of Units Sold Cost per Unit Cost per Sold Date #of Units 1 Unit 01-Jan 12-Feb 4630 $ 25.00 Inventory Balance Inventory Cost per Unit Balance $ 20.00 $ 83,800 $ 20.00 $ 83,800 S 25.00 $ 115,750 20.00 $ 11,000 25.00 $ 115,750 $ 20.00 $ 11,000 $ 25.00 $ 115,750 $ 28.00 $ 166,600 02-Mar 3640 $ 20.00 4190 4190 4630 550 4630 550 4630 5950 $ 72,800.00 $ 18-Apr 5950 $ 28.00 31-May 550 4630 $ $ 20.00 $ 11,000.00 25.00 $ 115,750.00 5950 $ 28.00 $ 166,600

Ending Inventory under Periodic, Last in first out(LIFO), Cost Flow From Beginning Inventory From next earliest purchase Ending Inventory Units Unit Cost Total Cost 4190 $ 20.00 $ 83,800 1760 $ 25.00 $ 44,000 5950 $ 127,800 d) Inventry Balance Perpectual LIFO cost flow Goods Purchased Cost of Goods Sold Cost per Date # of Units Cost per Cost of Goods # of Units Sola 1 Unit Unit Sold 01-Jan 12-Feb 4630 S 25.00 02-Mar 3640 S 25.00 S 91,000.00 # of Units Cost per Unit Inventory | Balance 4190 S 20.00 S 83,800 4190 IS 20.00 S 83,800 4630 IS 25.00 $ 115,750 4190 S 20.00 S 83,800 990 S 25.00 S 24,750 4190 20.00 $ 83,800 990 25.00 S 24,750 5950 s 28.00 S 166,600 4190 20.00 S 83,800 990 S 25.00 S 24,750 770 IS 28.00 S 21,560 18-Apr 5950 S 28.00 1$ 31-May 5180 S 28.00 $145,040.00 Ending inventory = $ 83800 + $ 24750 + $ 21560 = $ 130,110 Activa

Periodic system, Weighted Average Cost Flow Ending Inventory under Weighted Average cost method Weighted Average cost per unit = Total cost of Goods availabe for sales/Total Units $366150/ 14770 $ 24.79 per unit Ending Inventory 5950 * $ 24.79 per unit $ 147,501 Perpectual System ,Moving Average cost Flow Inventory Balance Goods Purchased Cost of Goods Sold Cost per Cost per Cost of Goods # of Units Date # of Units 1# of Units Sola Unit Unit Sold Sold 01-Jan 4190 12-Feb 4630 4190 4630 8820 02-Mar 3640 S 22.62S 82,354 18-Apr 5950 $28.00 5180 5950 11130 31-May 5180 $ 25.50 $ 132,081 5950 Inventory Cost per Unit cost per Balance S 20.00 S 83,800 S 20.00 S 83,800 S 25.00 $ 115,750 22.62S 199,550 22.62 S 117,196 22.62S 117,196 28.00 S 166,600 S 25.50 S 283,796 $ $ 25.50 $ 151,715 5180 TS S 28.00