Question

Tamarisk 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		2,600		$17
2/4		Purchase		3,600		25
2/20		Sale		4,100		42
4/2		Purchase		4,600		32
11/4		Sale		3,800		46

(a)

Correct answer iconYour answer is correct.

Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.)

Average-cost per unit

$

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Attempts: 1 of 3 used

(b)

Incorrect answer iconYour answer is incorrect.

Compute cost of goods sold, assuming Tamarisk 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

The answers are:

a	Average cost per unit	26.0556
b
(a)	Periodic system, FIFO	188,600
(b)	Perpetual system, FIFO	188,600
(c )	Periodic system, LIFO	229,700
(d)	Perpetual system, LIFO	220,100
(e)	Periodic system, weighted average cost	205,839
(f)	Perpetual system, moving average cost	198,012

Calculations:

(a): Average cost per unit = (2600*17)+(3600*25)+(4600*32)/(2600+3600+4600)

= $26.0556

(b) (a): Beginning inventory = 2600. Total purchases = 3600+4600 = 8200. Units available for sale = 2600+8200 = 10800. Sales = 4100+3800 = 7900. Thus units on hand = 10800-7900 = 2900

Periodic FIFO
2600*17	44,200
1500*25	37,500
2100*25	52,500
1700*32	54,400
Total	188,600

(b): Perpetual FIFO = same as periodic FIFO

(c): Periodic LIFO:

Periodic LIFO
3800*32	121,600
800*32	25,600
3300*25	82,500
Total	229,700

(d): Perpetual LIFO:

Perpetual LIFO
Date	Purchased		Sold		Balance
1/1					2600*17	44,200
2/4	3600*25	90,000			2600*17	134,200
					3600*25
2/20			3600*25	98,500
			500*17		2100*17	35,700
4/2	4600*32	147,200			2100*17	182,900
					4600*32
11/4			3800*32	121,600	2100*17	61,300
					800*32
			Total	220,100

(e): Periodic system, weighted average = 26.0556 (as computed in "a") * 7900 = $205,839

(f): Perpetual system, moving average:

Date	Purchased		Sold		Balance
1/1					2600*17	44,200
2/4	3600*25	90,000			6200*21.6452	134,200
2/20			4100*21.6452	88,745	2100*21.6452	45,455
4/2	4600*32	147,200			6700*28.7545	192,655
11/4			3800*28.7545	109,267	2900*28.7545	83,388
			Total	198,012