Question

Need help stuck in these questions, not sure if I'm doing them right.

Chapter 8 Homework Question 10 View Policies Current Attempt in Progress Whispering Company is a multiproduct form. Presented below is information concerning one of its products, the Hawkeye. Quantity Price Cost 2.100 Date Transaction 1/1 Beginning inventory 2/4 Purchase 2/20 Sale 4/2 Purchase 11/4 Sale 3.100 3.600 4,100 3,300 $16 = 33.600 23-71.300 39 = 140,400 30123.000 43 - 141,900 Calculate average cost per unit. (Round answer to 4 decimal places, s 2.7613) Average-cost per unit $ 24. SOS 33 600 +7,300 + 123000 e Textbook and Media Compute cost of goods sold, assuming Whispering uses: (Round average cost per unit to 4 decimal places, eg 2.7631 and final answers to decimal places, eg. 6,548.) $155.900 Cost of goods sold 5,900 2:00 16:33 600 5-345010023 150 eases 500 100 slow noves (a) Periodic system, FIFO cost flow (b) Perpetual system, FIFO cost flow (c) Periodic system, LIFO cost flow (d) Perpetual system, LIFO cost flow $ $ 55.900 $ 187,400 $ 178,300 31,00 (e) Periodic system, weighted average cost flow $ (f Perpetual system, moving average cost flow $ e Textbook and Media

Answer 1

Solution Required 1.: Computation of average cost per unit Step-1: Calculate Cost of Goods available for sale Date Units 2100 1/1 Particulars Beginning Inventory Purchases Purchases Total Unit cost $16 $23 $30 3100 Total cost $33,600 $71,300 $123,000 $227,900 4100 9300 Cost of goods available for sale No. of units available for sale $227,900 9300 Step-2: Compute average cost per unit Average cost per unit = Cost of Goods available for sale / No. of units available for sale = $227,900 / 9,300 = $24.5054 Average cost per unit 1 $24.5054 Required 2.: Computation of cost of Goods sold (a) Periodic system, FIFO cost flow Under FIFO cost flow, inventories purchased first are issued first. We can calculate the cost of Goods sold under FIFO method as under Total units sold = 3,600 +3,300 = 6,900 units Units issued 2100 3100) 1700 6900 Rate $16 $23 $30 COGS $33,600 $71,300 $51,000 $155,900 Cost of Goods sold I $155,900

(b) Perpetual system, FIFO cost flow Inventory Balance Goods Purchased # of Cost per units Cost of Goods Sold Cost per Cost of Goods Sold unit # of units sold Date # of units Inventory Balance unit 1/1 2/4 3100 Cost per unit $ 16.00 $ 16.00 $23.00 $ 23.00 @ $ 2100 2100 3100 1600 23.00 @ @ @ @ = = = = $ 33,600.00 $ 33,600.00 $ 71,300.00 $ 36,800.00 2/20 2100 1500 @ @ $ 16.00 $ 23.00 = = $ $ 33,600.00 34,500.00 4/2 | 4100 @ $ 30.00 1600 4100 2400 @ @ @ $ 23.00 $ 30.00 $ 30.00 = = = $ 36,800.00 $ 123,000.00 $ 72,000.00 11/4 L L L L 1600 1700 @ @ $ 23.00 $ 30.00 = = $ 36,800.00 $ 51,000.00 $ 155,900.00 Totals $ 72,000.00 FIFO Method Cost of Goods sold $ 155,900 (c) Periodic system, LIFO cost flow Under LIFO cost flow, inventories purchased last are issued first. We can calculate the cost of Goods sold under LIFO method as under: Total units sold = 3,600 +3,300 = 6,900 units Units issued COGS 4100 2800 6900 Rate $30 $23 $123,000 $ 64,400 $187,400 Cost of Goods sold $187,400

(d) Perpetual system, LIFO cost flow Inventory Balance Goods Purchased # of Cost per units Cost of Goods Sold Cost per Cost of Goods Sold unit # of units sold Date # of units Inventory Balance unit 1/1 2/4 3100 Cost per unit $ 16.00 $ 16.00 $23.00 $ 16.00 @ $ 2100 2100 3100 1600 23.00 @ @ @ @ = = = = $ 33,600.00 $ 33,600.00 $ 71,300.00 $ 25,600.00 2/20 3100 500 @ @ $ 23.00 $ 16.00 = = $ $ 71,300.00 8,000.00 4/2 | 4100 @ $ 30.00 1600 4100 1600 800 @ @ @ @ $ 16.00 $ 30.00 $ 16.00 $ 30.00 = = = = 11/4 3300 @ $ 30.00 = $ 99,000.00 $ 25,600.00 $ 123,000.00 $ 25,600.00 $ 24,000.00 $ 49,600.00 Totals $ 178,300.00 LIFO Method Cost of Goods sold $ 178,300 le) Periodic system, Weighted Average cost flow Total units sold = 3,600 + 3,300 = 6,900 units Average cost per unit = $24.5054 (Refer Req.1) Cost of Goods sold = 6,900 x $24.5054 = $169,087 Cost of Goods sold $169,087

(f) Perpetual system, moving average cost flow Inventory Balance Goods Purchased # of Cost per units unit Cost of Goods Sold Cost per Cost of Goods Sold unit # of units sold Date # of units Inventory Balance 1/1 2/4 3100 @ $ 23.00 Average 2/20 4/2 3600 Cost per unit $ 16.00 $ 16.00 $ 23.00 $ 20.17 $ 20.17 $ 20.17 $ 30.00 $ 27.24 $ 27.24 @ $ 20.17 = $ 2100 2100 3100 5200 1600 1600 4100 5700 2400 72,623.08 @ @ @ @ @ @ @ @ @ = = = = = = = = = $ 33,600.00 $ 33,600.00 $ 71,300.00 $ 104,900.00 $ 32,276.92 $ 32,276.92 $ 123,000.00 $ 155,276.92 $ 65,379.76 $ 65,379.76 4100 @ $ 30.00 Average 11/4 Totals | 3300 @ $ 27.24 = $ 89,897.17 $ 162,520.24 Moving-average Method Cost of Goods sold $ 162,520 (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 Cost of Goods sold $155,900 $155,900 $187,400 $178,300 $169,087 $162,520