Question

In: Accounting

Concord Company is a multiproduct firm. Presented below is information concerning one of its products, the...

Concord 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 1,500 $14
2/4 Purchase 2,500 21
2/20 Sale 3,000 35
4/2 Purchase 3,500 27
11/4 Sale 2,700 39

(b.) Compute cost of goods sold, assuming Concord 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

$

Solutions

Expert Solution

COST OF GOODS SOLD:

Units available=

7500

Unis sold

5700

Clos Units =

1800

a) Periodic FIFO:

Units sold

Periodic Price

COGS

Beg inv.

1500

14

21000

4-Feb

2500

21

52500

2-Apr

1700

27

45900

Total

5700

119400

b) Perpetual FIFO:

Units sold

Perpetual Price

COGS

Begin inv.

1500

14

21000

4-Feb

1500

21

31500

4-Feb

1000

21

21000

2-Apr

1700

27

45900

Total

5700

119400

c) Periodic LIFO:

Units sold

Periodic Price

COGS

2-Apr

3500

27

94500

4-Feb

2200

21

46200

Total

5700

140700

d) Perpetual LIFO:

Units sold

Perpetual Price

COGS

4-Feb

2500

21

52500

Begin inv.

500

14

7000

2-Apr

2700

27

72900

Total

5700

132400

e) Periodic WACM:

Units sold

Periodic WA Price

COGS

total sale

5700

(1500*14 + 2500*21 + 3500*27)/7500 = 22.4

127680

f) Perpetual WACM:

Units sold

Perpetual WA Price

COGS

20-Feb

3000

(1500*14 + 2500*21)/4000=18.375

55125

4-Nov

2700

(1000*18.375 + 3500*27)/4500=25.0833

67725

Total

5700

122850


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