Question

Splish Company is a multi product firm. Presented below is information concerning one of its products, the Hawkeye.

Date		Transaction		Quantity		Price/Cost
1/1		Beginning inventory		2,000		$15
2/4		Purchase		3,000		23
2/20		Sale		3,500		38
4/2		Purchase		4,000		29
11/4		Sale		3,200		42

Average-cost per unit $ _______

Compute cost of goods sold, assuming Splish 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

	Beginning inventory	2000
	Purchases (3000+4000)	7000
	Units available for sale	9000
	Sales (3500+3200)	-6700
	Units available for sale	2300
a.	Periodic system
	Periodic FIFO
	2000*15	30000
	3000*23	69000
	1700*29	49300
	Cost of goods sold (6700 units)	148,300
b.	Perpetual FIFO
	The solution will be same as Periodic system
	Cost of goods sold (6700 units)	148,300
c.	Periodic LIFO
	4000*29	116000
	2700*23	62100
	Cost of goods sold (6700 units)	178,100

d.	Perpetual LIFO
Date	Purchased		Sold			Balance
1/1						2000*15 =	30000
2/4	3000*23 =	69000			2000*15	30000
					3000*23 =	69000	99000
2/20			3000*23 =	69000
			500*15 =	7500		1500*15	22500
				76500
4/2	4000*29 =	116000			4000*29 =	116000
					1500*15	22500	138500
11/4			3200*29 =	92800
	Cost of goods sold (6700 units)			169,300
	(76500+92800)
e.	Periodic weighted-average
		2000*15=	30000
		3000*23=	69000
		4000*29 =	116000
			215000
		No. Of units	9000
		Cost p.u	23.8889
	Cost of goods sold (6700 units)		160,056
f.	Perpetual moving average
	Opening Balance	2000*15	30000
	purchase	3000*23	69000
	Units	5000	99000
	Cost p.u		19.8
	COGS	3500*19.8	69300
	Balance	1500*19.8	29700
	Purchase	4000*29	116000
	Units	5500	145700
	Cost p.u		26.4909
	COGS	3200*26.4909	84770.88
	Cost of goods sold (6700 units)		154,071
	(84770.88+69300)