Question

Concord Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,500 $14 2/4 Purchase 2,500 21 2/20 Sale 3,000 35 4/2 Purchase 3,500 27 11/4 Sale 2,700 39

Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ LINK TO TEXT

Compute cost of goods sold, assuming Concord uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.) Cost of goods sold (a) Periodic system, FIFO cost flow $ (b) Perpetual system, FIFO cost flow $ (c) Periodic system, LIFO cost flow $ (d) Perpetual system, LIFO cost flow $ (e) Periodic system, weighted-average cost flow $ (f) Perpetual system, moving-average cost flow $

Answer 1

Average Cost per Unit $22.4000 Average Cost per Unit Average cost per unit = Total cost of Goods availabe for sales/Total Units $ 168000/ 7500 $ 22.4000 per unit

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 168,000 168,000 168,000 168,000 168,000 168,000 Ending Cost of Inventory Goods Sold $ 48,600 $ 119,400 $ 48,600 $ 119,400 $ 27,300 $ 140,700 $ 35,600 $ 132,400 $ 40,320 $ 127,680 $ 45,150 $ 122,850 Notes: Cost of Goods availabe for sale = Beginning inventory + Purchases Cost of Goods Sold = Cost of Goods available for sale - Ending inventory

Cost per unit Working Notes Cost of Goods available for sale Date Tranasaction Quantity | 1/1 Beginning inventory 1500 $ 2/4 Purchase 2500 $ 4/2 Purchase 3500 $ Total cost of Goods available for sale Total cost 14 $ 21,000 21 $ 52,500 27 $ 94,500 $ 168,000 Computation of Closing Inventory in Units : Particulars Beginning Inventory Purchases, 2/4 Purchases, 4/2 Total No. of Units available for sale Less : Sales, 2/20 Sales, 11/4 Ending Inventory Units 1500 2500 3500 7500 3000 2700 1800

Periodic system, FIFO cost flow Ending Inventory under First in First out FIFO Periodic method Most recent Cost , from purchases, 4/2 (1800* $ 27) $ 48,600 Ending Inventory $ 48,600 Perpectual system, FIFO cost flow Ending Inventory under First in First out( FIFO) Periodic method Goods Purchased Cost per # of Units 1 Unit Cost of Goods Sold Cost per Cost of Goods # of Units Sold Unit Sold Date Inventory Balance # of Inventory Cost per Unit Units Balance 1500S 14.00 $ 21,000.00 1500S 14.00 $ 21,000.00 2500S 21.00 S 52,500.00 1/1 2/4 2500 - 21.00 2/20 1500 1500 S S 14.00 21.00 $ 21,000.00 S 31,500.00 S 4/2 3500 S 27.00 1000 1000S 3500S 21.00 S 21,000.00 21.00 $ 21,000.00 27.00 S 94,500.00 1000 1700 S $ 21.00 $ 21,000.00 27.00 S 45,900.00 1800 S 27.00 $ 48,600.00

Ending Inventory under Last in first out( LIFO), Cost Flow $ 21,000 Earliest Cost, from Beginning invenotry, 1/1 (1500*$14) Next earliest cost, from purchases, 2/4 (300 * $ 21 ) Ending Inventory $ $ 6,300 27,300 Perpectual LIFO cost flow Goods Purchased Cost per Date # of Units 1 Unit 1/1 2/4 2500 S 21.00 Cost of Goods Sold Cost per Cost of Goods # of Units Sold Unit Sold Inventry Balance # of Inventory Cost per Unit Units Balance 1500S 14.00 S 21,000.00 1500S 14.00 S 21,000.00 2500S 21.00 S 52,500.00 2/20 S 2500 500 21.00 14.00 S 52,500.00 S 7,000.00 S 4/2 3500 $ 27.00 1000S 1000S 3500S 1000S 800 14.00 14.00 27.00 14.00 27.00 $ 14,000.00 $ 14,000.00 S 94,500.00 $ 14,000.00 S 21,600.00 2700 $ 27.00 S 72,900.00 S Ending inventory = $ 14000+21600 = $ 35,600

e) 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 $ 168000/ 7500 $ 22.4000 per unit Ending Inventory 1800* $ 22.40per unit $ 40,320 f) Perpectual System ,Moving Average cost Flow Goods Purchased Cost of Goods Sold Date # of Units Cost per Unit # of Units Sold Cost per Unit Cost of Goods I Sold 1/1 2/4 | 2500 $ 21.00 Inventory Balance # of Inventory Units Cost per Unit Balance Sold 1500S 14.00 S 21,000 1500S 14.00 S 21,000 2500S 21.00 S 52,500 4000 S 18.3750 S 73,500 1000S 18.3750 S 18,375 1000S 18.3750 S 18,375 3500 S 27.00 S 94,500 4500 S 25.0833S 112,875 1800 $ 25.0833 $ 45,150 3000 S 18.3750 S 55,125 2/20 4/2 3500 S 27.00 11/4 2700 | $ 25.0833 $ 67,725