Question

P8.6 (LO 3) Groupwork (Compute FIFO, LIFO, Average-Cost-Periodic and Perpetual) Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Price/Cost $12 Date 1/1 2/4 2/20 Transaction Beginning inventory Purchase Sale Purchase Sale Quantity 1,000 2,000 2,500 3,000 2,200 4/2 11/4 Instructions Compute cost of goods sold, assuming Ehlo uses: 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

a.

FIFO Cost of goods available for sale Cost of goods sold Euting Inventory Cost of goods available for Cost of Cost per Ending No. of uits Cost per unit sale No. ofumits Cost per mit goods sold No. of units umit Inventory 1.000 121 1 2.000 1.000 12.000 Begiming Inventory 1/1 Purchases: 24 2000l 3.0001 6.000 36.000 69.000 117.000 2.000 1.700 4.700 36.0001 39.1001 87.100 1.300l 13001 231 1 Total 29.900 29 9001

b.

Date FIFO-Pemetual Goods Purchased Cost of goods sold Cost per unit Cost of purchase Units sold @ Cost per mit Cost of goods sola Tan01 Bilance Ending metar Units Cost per titEnding balance 10001 120.00 10. 01 120.00 12.000 2000 3.000 48000 5001 18 Balance Balance Apr- 0 5001 5001 30ml 3.500 13001 23 2000 0.000 60000 78.000 20900 Nov-04 2 3 Pelance 13.00 | | 29.900 Costof Good Sold

c.

LIFO Cost of goods available for sale Cast of goods sold Euting Inventory Cost of goods available for Cost of Cost pr Ending No. of uits Cost per unit sale No. ofumits Cost per mit goods sold No. of units umit Inventory 1.000 121 1 2.000 121 12.000 100011 Begiming Inventory 1/1 Purchases: 24 30.600 5.400 2000l 3.0001 6.000 36.000 69.000 117.000 1.700 3.000 4.700 Total 69.000 99.600 1300 17.400

d.

LIFO-Perpetual Ceed Purchased Cost of goods sold Cost per unit Cost of purchase Units sold @ Cost per mit Cost of goods sola Tan01 Palliance Units 10001 10001 1000 2009 3.000 Endine metar Cost per mit Encing balance 120.00 120.00 12.000 18 360ml 48000 Balance 5001 Balance 60.00 5001 23 3.500 300 Nov-04 50.500 12 60 ml 750001 60.00 18400 24400 ml Place 13001 Cast of Good Sold

e.

Weighted Average Cost of goods available for sale Cast of goods sold Euting Inventory Cost of goods available for Cost of Cost per Ending No. of uits Cost per unit Sale No.ofumits Cost per unit goods sold No. of units umit Inventory 121 1 2.000 4.700 201 91,650 1.300 201 25,350 Begiming Inventory 1/1 Purchases: 24 2.000l 3.0001 6.000 181 23 20 36.000 699.000 117.000 Total 91.6501 13001 25.350l

f.

Date Marine mege-Pernetual Good Porshed Cost of goods sold Cost rerum cost ofreche Tinitescille Ending Inventory Tirits Talcot permittima halance 100 1200 10.00 120.00 Tan_01 Bilance :-04 Balance 16 48000 3.000 500 | 3 80.000 Balance Apr-02 Place 5001 500 3.000 3500 11 69.000 77000 28.600 Bilance 13.00 28600 Cost of Good Sold