Question

Sandhill 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 2,200 $16 2/4 Purchase 3,200 24 2/20 Sale 3,700 40 4/2 Purchase 4,200 30 11/4 Sale 3,400 44 Collapse question part (a) Incorrect answer. Your answer is incorrect. Try again. Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ Entry field with incorrect answer Show Solution Link to Text By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 3 of 3 used Collapse question part (b) Compute cost of goods sold, assuming Sandhill 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

COST OF GOODS AVAILABLE FOR SALE:
Date	Units	Rate	Total Cost
Jan-01	2200	16	35200
Feb-04	3200	24	76800
Apr-02	4200	30	126000
	9600		238000
SALE:
Feb-20	3700
Nov-04	3400
	7100
Balance Units	2500
ANSWERS:
Average cost per unit = 238000/9600 =				$       24.7917
Cost of goods sold (AVG COST) = 7100*24.7917 =				$      1,76,021
COST OF GOODS SOLD:
PERIODIC SYSTEM - FIFO:
=2200*16+3200*24+1700*30 =				$      1,63,000
PERPETUAL SYSTEM - FIFO:
= 2200*16+1500*24+1700*24+1700*30=				$      1,63,000
PERIODIC SYSTEM- LIFO"
= 4200*30+2900*24 =				$      1,95,600
PERPETUAL SYSTEM - LIFO:
= 3200*24+500*16+3400*30 =				$      1,86,800
PERIODIC SYSTEM - WEIGHTED AVERGE:
= 7100*24.7917 =				$      1,76,021
PERPETUAL SYSTEM - WEIGHTED AVERAGE:
Feb 04 - Weighted average = (2200*16+3200*24)/5400 =				$       20.7407
Apr 2 -Weighted average = (1700*20.7407+4200*30)/5900=				$       27.3321
Feb-20	Cost of goods sold = 3700*20.7407=			$         76,741
Nov-04	Cost of goods sold = 3400*27.3321 =			$         92,929
	COGS Weighted average-Perpetual system			$      1,69,670