In: Accounting
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 |
$ |
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 |