Question

Problem 8-06 Concord Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction 1/1 Beginning inventory 2/4 Purchase 2/20 Sale 4/2 Purchase 11/4 Sale Quantity Price/Cost 1,500 $14 2,500 3,000 3,500 2,700 Your answer is correct. Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit 22.4 LINK TO TEXT Your answer is incorrect. Try again. 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 O 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 T () Perpetual system, moving average cost flow Click if you would like to Show Work for this question: Open Show Work

Answer 1

Periodic System
FIFO
Under FIFO, goods purchased first are sold first

FIFO		Cost of Goods Sold
		Quantity	Unit Cost	Amount
1/1	Beginning Inventory	1500	$            14.00	$         21,000.00
2/4	Purchase	2500	$            21.00	$         52,500.00
4/2	Purchase	1700	$            27.00	$         45,900.00
	Total	5700		$       119,400.00

LIFO
Under LIFO, Goods purchased at last are sold first

LIFO		Cost of Goods Sold
		Quantity	Unit Cost	Amount
4/2	Purchase	3500	$            27.00	$         94,500.00
2/4	Purchase	2200	$            21.00	$         46,200.00
	Total	5700		$       140,700.00

Weighted Average
Cost of Goods sold = 5700 x $22.40 = $127680

Perpetual system
FIFO

FIFO		Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
1/1	Beginning Inventory	1500	$            14.00	$       21,000.00				1500	$    14.00	$    21,000.00
2/4	Purchase	2500	$            21.00	$       52,500.00				1500	$    14.00	$    21,000.00
								2500	$    21.00	$    52,500.00
2/20	Sales				1500	$        14.00	$      21,000.00
					1500	$        21.00	$      31,500.00	1000	$    21.00	$    21,000.00
4/2	Purchase	3500	$            27.00	$       94,500.00				1000	$    21.00	$    21,000.00
								3500	$    27.00	$    94,500.00
11/4	Sales				1000	$        21.00	$      21,000.00
					1700	$        27.00	$      45,900.00	1800	$    27.00	$    48,600.00
					COGS		$    119,400.00	Ending Inventory		$    48,600.00

LIFO		Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
1/1	Beginning Inventory	1500	$            14.00	$       21,000.00				1500	$    14.00	$    21,000.00
2/4	Purchase	2500	$            21.00	$       52,500.00				1500	$    14.00	$    21,000.00
								2500	$    21.00	$    52,500.00
2/20	Sales				2500	$        21.00	$      52,500.00	1000	$    14.00	$    14,000.00
					500	$        14.00	$        7,000.00
4/2	Purchase	3500	$            27.00	$       94,500.00				1000	$    14.00	$    14,000.00
								3500	$    27.00	$    94,500.00
11/4	Sales				2700	$        27.00	$      72,900.00	1000	$    14.00	$    14,000.00
								800	$    27.00	$    21,600.00
					COGS		$    132,400.00	Ending Inventory		$    35,600.00

W.Avg		Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
1/1	Beginning Inventory	1500	$            14.00	$             21,000				1500	$    14.00	$          21,000
2/4	Purchase	2500	$            21.00	$             52,500				1500	$    14.00	$          21,000
								2500	$    21.00	$          52,500
					Average			4000	$    18.38	$          73,500
2/20	Sales				3000	$        18.38	$            55,125	1000	$    18.38	$          18,375
4/2	Purchase	3500	$            27.00	$             94,500				1000	$    18.38	$          18,375
								3500	$    27.00	$          94,500
					Average			4500	$    25.08	$        112,875
11/4	Sales				2700	$        25.08	$            67,725	1800	$    25.08	$          45,150
					COGS		$          122,850	Ending Inventory		$          45,150