Question

Swifty 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		1,300		$14
2/4		Purchase		2,300		21
2/20		Sale		2,800		34
4/2		Purchase		3,300		26
11/4		Sale		2,500		38

Compute cost of goods sold, assuming Swifty 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

Ans.	Available for sale
	Date		Units	Rate	Total
	1-Jan		1300	$14.00	$18,200
	4-Feb		2300	$21.00	$48,300
	2-Apr		3300	$26.00	$85,800
	Cost of goods available for sale		6900		$152,300
	Units sold   (2,800 + 2,500) =   5,300 units
Ans. A	Periodic FIFO:
	Date	Units	Rate	Total
	1-Jan	1300	$14.00	$18,200
	4-Feb	2300	$21.00	$48,300
	2-Apr	1700	$26.00	$44,200
	Cost of goods sold	5300		$110,700
Ans. B	Perpetual FIFO:
	Purchase	Cost of goods sold	Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	1-Jan							1300	$14.00	$18,200
	4-Feb	2300	$21.00	$48,300				1300	$14.00	$18,200
								2300	$21.00	$48,300
	20-Feb				1300	$14.00	$18,200
					1500	$21.00	$31,500	800	$21.00	$16,800
	2-Apr	3300	$26.00	$85,800				800	$21.00	$16,800
								3300	$26.00	$85,800
	4-Nov				800	$21.00	$16,800
					1700	$26.00	$44,200	1600	$26.00	$41,600
	Total				Cost of goods sold		$110,700	Ending inventory	$41,600
	*In FIFO method the units that have purchased first, are released the first one and the ending inventory units remain from last purchases.
Ans. C	Periodic LIFO:	Date	Units	Rate	Total
		2-Apr	3300	$26.00	$85,800
		4-Feb	2000	$21.00	$42,000
		Cost of goods sold	5300		$127,800