Question

sion) in 8-6 (Part Level asion Score Results by Study (b) Compute cost of goods sold, assuming Grouper uses: (Round average cost per unit to 4 decimal places, e.g. Cost of goods sold (a) Periodic system, FIFO cost flow (b) Perpetual system, FIFO cost flow (c) Periodic system, LIFO cost how (d) Perpetual system, uiro cost flow (e) Periodic system, weighted average cost flow (1) Perpetual system, moving average cost flow LINK TO TEXT

Answer 1

Question Periodic system, FIFO Cost flow Perpectual system, FIFO Cost flow Periodic system, LIFO Cost flow Perpectual system, LIFO Cost flow Periodic system, Weighted Average Cost flow Perpectual system, Moving Average Cost flow Total cost of Goods 1 Ending Cost of Goods available for sale (A) Inventory (B) Sold (A-B) 345,000 $ 119,000 $ 226,000 345,000 $ 119,000 $ 226,000 345,000 $ 63,900 $ 281,100 345,000 $ 74,800 $ 270,200 345,000 $ 95,366 $ 249,634 | $ 345,000 $ 105,367 $ 239,633 Notes: Goods availabe for sale = Beginning inventory + Purchases Cost of Goods Sold = Goods available for sale - Ending inventory

Working Notes Cost of Goods available for sale Tranasaction Quantity | Cost per unit Total cost 1/1 Beginning inventory | 3100 $ 18 $ 55,800 2/4 Purchase 4100 $ 27 $ 110,700 4/2 Purchase 5100 $ 35 $ 178,500 Total cost of Goods available for sale $ 345,000 Computation of Closing Inventory in Units: Particulars Beginning Inventory Purchases, 2/4 Purchases, 4/2 Total No. of Units available for sale Less: Sales, 2/20 Sales, 11/4 Ending Inventory Units 3100 4100 5100 12300 4600 4300 3400

Periodic system, FIFO cost flow Ending Inventory under First in First out( FIFO) Periodic method Most recent Cost , from purchases, 4/2 (3400* $ 35) $ 119,000 Ending Inventory $ 119,000 b) Perpectual system, FIFO cost flow Perpetual FIFO Goods Purchased Cost per Date # of Units init Cost of Goods Sold # of Units Sola Cost per Cost of Goods Unit Sold 1/1 2/4 Inventry Balance # of Cost per Inventory Units Unit Balance 3100S 18.00 $ 55,800.00 3100S 18.00 $ 55,800.00 4100 S 27.00 $110,700.00 14100 S 27.00 2/20 3100 1500 S S 18.00 27.00 S 55,800.00 $ 40,500.00 4/ 2 5100 S 35.00 2600S 2600S 5100 27.00 27.00 35.00 S 70,200.00 $ 70,200.00 $178,500.00 S 11/4 2600 1700 S S 27.00 35.00 $ 70,200.00 S 59,500.00 3400 S 35.00 $119,000.00

Periodic LIFO cost flow Ending Inventory under Last in first out(LIFO), Cost Flow $ 55,800 Earliest Cost, from Beginning invenotry, 1/1 (3100*$ 18) Next earliest cost, from purchases, 2/4 ( 300 * $ 27) Ending Inventory $ $ 8,100 63,900 d) Perpetual LIFO cost flow Goods Purchased Cost per Date # of Units 1 Unit 1/1 2/ 4 4100 S 27.00 Cost of Goods Sold Cost per Cost of Goods # of Units Sold Unit Sold # of Units 3100 3100 4100 Inventry Balance Cost per Inventory Unit Balance S 18.00 S 55,800.00 S 18.00 S 55,800.00 S 27.00 $110,700.00 2/20 S 4100 500 27.00 18.00 $110,700.00 S 9,000.00 S 4/2 5100 S 35.00 2600S 2600S 5100 $ 2600S 800 S 18.00 18.00 35.00 18.00 35.00 S 46,800.00 S 46,800.00 $178,500.00 S 46,800.00 $ 28,000.00 11/4 4300 S 35.00 $150,500.00 Ending inventory = $ 46800 +$ 28000 = $ 74,800

e) Periodic system, Weighted Average Cost Flow Ending Inventory under Weighted Average cost method Weighted Average cost per unit = Total cost of Goods availabe for sales / Total Units available $ 345000 / 12300 $ 28.0488 per unit Ending Inventory 3400 * $ 28.0488 per unit $ 95,366 Perpetual System ,Moving Average cost Flow Goods Purchased Date # of Units Cost per Unit Units Unit Sola 1/1 2/ 4 4100 S 27.00 Cost of Goods Sold Inventory Balance # of Cost per Cost of Goods # of Units Sola Cost per Inventory Unit Balance Sold 3100S 18.00 S 55,800 3100 S 18.00 S 55,800 4100 S 27.00 110,700 7200 S 23.1250S 166,500 4600 S 23.1250 S 106,375 | 2600 IS 23.1250 S 60,125 2600S 23.1250S 60,125 5100 S 35.00 S 178,500 7700 S 30.9903 S 238,625 4300 $ 30.9903 $ 133,258 3400 $ 30.9903 $ 105,367 2/20 4/2 5100 S 35.00 11/4