Question

Sheridan 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 1,700 $15 2/4 Purchase 2,700 22 2/20 Sale 3,200 37 4/2 Purchase 3,700 28 11/4 Sale 2,900 40 Incorrect answer iconYour answer is incorrect. Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ 21.1728 eTextbook and Media Incorrect answer iconYour answer is incorrect. Compute cost of goods sold, assuming Sheridan 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

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Due to character limit I am attaching the images for solution of Perpetual Moving Average method:

Sheridan Company
Periodic System					Periodic System
Weighted Average	Unit	Rate	Amount $		FIFO	Unit	Rate	Amount $
Opening	1,700.00	15.00	25,500.00		Units sold
Purchase 1	2,700.00	22.00	59,400.00		Sale 1	3,200.00
Purchase 2	3,700.00	28.00	103,600.00		Sale 2	2,900.00
Total	8,100.00		188,500.00		Total sales	6,100.00
Average rate per unit		23.2716			Less:
					Opening on Jan 1	1,700.00	15.00	25,500.00
Units sold					Purchase 1	2,700.00	22.00	59,400.00
Sale 1	3,200.00	23.27	74,469.14		Purchase 2	1,700.00	28.00	47,600.00
Sale 2	2,900.00	23.27	67,487.65		Cost of goods sold	6,100.00		132,500.00
Cost of goods sold	6,100.00		141,956.79
Perpetual FIFO
Date	Cost of Goods available for sale			Cost of Goods sold			Inventory Balance
	No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
Opening	1,700.00	15.00	25,500.00				1,700.00	15.00	25,500.00
Purchase 1	2,700.00	22.00	59,400.00				1,700.00	15.00	25,500.00
							2,700.00	22.00	59,400.00
Sale 1				1,700.00	15.00	25,500.00	1,200.00	22.00	26,400.00
				1,500.00	22.00	33,000.00
Purchase 2	3,700.00	28.00	103,600.00				1,200.00	22.00	26,400.00
							3,700.00	28.00	103,600.00
Sale 2				1,200.00	22.00	26,400.00	2,000.00	28.00	56,000.00
				1,700.00	28.00	47,600.00
Cost of Goods sold				6,100.00		132,500.00	2,000.00		56,000.00
Perpetual LIFO
Date	Cost of Goods available for sale			Cost of Goods sold			Inventory Balance
	No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
Opening	1,700.00	15.00	25,500.00				1,700.00	15.00	25,500.00
Purchase 1	2,700.00	22.00	59,400.00				1,700.00	15.00	25,500.00
							2,700.00	22.00	59,400.00
Sale 1				2,700.00	22.00	59,400.00	1,200.00	15.00	18,000.00
				500.00	15.00	7,500.00
Purchase 2	3,700.00	28.00	103,600.00				1,200.00	15.00	18,000.00
							3,700.00	28.00	103,600.00
Sale 2				2,900.00	28.00	81,200.00	1,200.00	15.00	18,000.00
							800.00	28.00	22,400.00
Cost of Goods sold				6,100.00		148,100.00	2,000.00		40,400.00

Periodic System
LIFO	Unit	Rate	Amount $
Units sold
Sale 1	3,200.00
Sale 2	2,900.00
Total sales	6,100.00
Less:
Purchase 2	3,700.00	28.00	103,600.00
Purchase 1	2,400.00	22.00	52,800.00
Cost of goods sold	6,100.00		156,400.00