Question

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.

Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.) June 1 sale: $enter a dollar amount Aug. 27 sale: $enter a dollar amount

Compute the cost of goods sold using FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		AVERAGE-COST
Cost of goods sold		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Answer 1

Ans:

Average cost of goods sold:

June 1 sale = $336

Aug 27 sale = $1,112.727

	FIFO	LIFO	AVERAGE COST
Cost of goods sold	$564	$684	$1,113

Date Particules Purchases Weil Ust pries Caxb) Palance o Amourette Sales (costs of goods sold art lanter Unit prius Amounts May 7 Puchares 4 8 14 672 48_ 1 Times Sales Tune Sales 24H 336 24 14 July 28 Purchases 36 19 684 ETFO Aug 27 Sales - 3.36 228 564 Total cost of goodle sold [$336 + $564] = $900. LEO _19__ 684 2 4_ 14 Aug 27 - Sales Total cost o groale sett ($ 324 +4684] = $1,020 + 30.909 36__ 30.909_ 11122224

Average cost of goods sold : June I Sales $226 Aug 27 Sales $1,112.727 Particulars FIFO & LIFO $ Average cost & Cost of goodle sold 564 684 1,113
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