Question

Benson Company is a manufacturing firm. Presented below is information concerning one of its products:

1/1	Beginning inventory	3,190	$10
2/12	Purchase	3,630	$15
3/2	Sale	2,640	$28
4/18	Purchase	4,950	$18
5/31	Sale	4,180	$30

Part A

Compute the cost of goods sold under the following situations:

Periodic system, FIFO cost flow

Perpetual system, FIFO cost flow

Periodic system, LIFO cost flow

Perpetual system, LIFO cost flow

Periodic system, weighted-average cost flow

Perpetual system, moving-average cost flow

Your answers must be submitted in an Excel file and must show all calculations used to arrive at the final answers.

Part B

Summarize the cost of goods sold in a one-page memo to Benson Corporation's CEO.

Answer 1

Periodic FIFO

Cost of goods sold

86350

Working:

Periodic FIFO
	Units	per unit cost	Total
Beginning inventory	3190	10	31900
Puchases
2/12	3630	15	54450
4/18	4950	18	89100
Goods available for sale (A)	11770		175450
Sales
3/2	2640
5/31	4180
Total goods sold          (B)	6820
Ending inventory (A - B)   (C)	4950	18	89100
Cost of goods sold (A - C)	6820		86350

Perpetual FIFO

Cost of goods sold

86350

Working:

Date	Details	Units	per unit cost	Value
1/1	Beginning	3190	10	31900
2/12	Purchase	3630	15	54450
3/2	Sale (A)	2640	10	26400
3/2	Ending	550	10	5500
	Ending	3630	15	54450
4/18	Purchase	4950	18	89100
5/31	Sale	550	10	5500
	Sale	3630	15	54450
	Total Sale   (B)	4180		59950
5/31	Cost of goods sold (A+B)	6820		86350

Periodic LIFO

Cost of goods sold

143550

Working:

Periodic LIFO
	Units	per unit cost	Total
Beginning inventory	3190	10	31900
Puchases
2/12	3630	15	54450
4/18	4950	18	89100
Goods available for sale (A)	11770		175450
Sales
3/2	2640
5/31	4180
Total goods sold          (B)	6820
Ending inventory (A - B)   (C)	3190	10	31900
	1760	15	26400
Total ending inventory (C)	4950		58300
Cost of goods sold (A - C)	6820		143550

Perpetual LIFO

Cost of goods sold

114840

Working:

Date	Details	Units	per unit cost	Value
1/1	Beginning	3190	10	31900
2/12	Purchase	3630	15	54450
3/2	Sale (A)	2640	15	39600
3/2	Ending	3190	10	31900
	Ending	990	15	14850
4/18	Purchase	4950	18	89100
5/31	Sale (B)	4180	18	75240
5/31	Cost of goods sold (A+B)	6820		114840

Periodic Weighted Average:

Cost of goods sold

101646

Working:

	Units	per unit cost	Total
Beginning inventory	3190	10	31900
Puchases
2/12	3630	15	54450
4/18	4950	18	89100
Goods available for sale (A)	11770		175450
Weighted average cost per unit		14.91
Sales
3/2	2640
5/31	4180
Total goods sold          (B)	6820
Ending inventory (A - B)   (C)	4950	14.91	73805
Cost of goods sold   (A - C)	6820		101646

Perpetual moving average

Cost of goods sold

98449

Working:

Date	Details	Units	per unit cost	Value
1/1	Beginning	3190	10	31900
2/12	Purchase	3630	15	54450
2/12	Total Inventory	6820		86350
2/12	Average cost		12.66
3/2	Sale (A)	2640	12.66	33426
3/2	Ending	4180	12.66	52924
4/18	Purchase	4950	18	89100
4/18	Total Inventory	9130		142024
4/18	Average cost		15.56
5/31	Sale (B)	4180	15.56	65023
5/31	Cost of goods sold (A+B)	6820		98449