Question

Teal 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 2,900 $18 2/4 Purchase 3,900 26 2/20 Sale 4,400 44 4/2 Purchase 4,900 34 11/4 Sale 4,100 48

Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $

Compute cost of goods sold, assuming Teal 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

ANSWER

Average Cost per Unit $ 27.3675 Average Cost per Unit Average cost per unit = Total cost of Goods availabe for sales/Total Units $ 320200 / 11700 $ 27.3675 per unit

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 available for sale 320,200 320,200 320,200 320,200 320,200 | $ 320,200 Ending | Cost of Inventory Goods Sold $ 108,800 $ 211,400 $ 108,800 $ 211,400 $ 60,000 $ 260,200 $ 70,400 $ 249,800 $ 87,576 $ 232,624 $ 96,794 $ 223,406 Notes: Cost of Goods availabe for sale = Beginning inventory + Purchases Cost of Goods Sold = Cost of Goods available for sale - Ending inventory

Cost per unit Working Notes Cost of Goods available for sale Date Tranasaction Quantity | 1/1 Beginning inventory 2900 $ 2/4 Purchase 3900 $ 4/2 Purchase 4900 $ Total cost of Goods available for sale T otal cost 18 $ 52,200 26 $ 101,400 34 $ 166,600 $ 320,200 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 2900 3900 4900 11700 4400 4100 3200

Periodic system, FIFO cost flow Ending Inventory under First in First out(FIFO) Periodic method Most recent Cost, from purchases, 4/2 (3200* $ 34) $ 108,800 Ending Inventory $ 108,800 b Perpectual system, FIFO cost flow Ending Inventory under First in First out FIFO) Periodic method Cost of Goods Sold Perpectual FIFO Goods Purchased Cost per Date # of Units Unit #of Units Sold Cost per Unit Cost of Goods Sold Inventory Balance # of Units Cost per Unit Inventory Balance 2900S 18.00 $ 52,200.00 2900 $ 18.00 $ 52,200.00 3900 $ 26.00 $ 101,400.00 1/1 2/ 4 3900 S 26.00 2/20 2900 1500 $ $ 18.00 26.00 $ 52,200.00 $ 39,000.00 4/2 4900 S 34.00 2400 2400 4900 $ $ $ 26.00 $ 62,400.00 26.00 $ 62,400.00 34.00 $ 166,600.00 2400 1700 $ $ 26.00 $ 62,400.00 34.00 $ 57,800.00 3200 S 34.00 $ 108,800.00

Ending Inventory under Last in first out(LIFO), Cost Flow $ 52,200 Earliest Cost, from Beginning invenotry, 1/1 ( 2900*$18) Next earliest cost, from purchases, 2/4 ( 300 * $ 26) Ending Inventory $ $ 7,800 60,000 d) Perpectual LIFO cost flow Goods Purchased Date # of Units Cost per Unit 1/1 3900 s 26.00 Cost of Goods Sold Cost per Cost of Goods # of Units Sold Unit Sold Inventry Balance # of . Inventory Cost per Unit Units 1 Balance 2900S 18.00 S 52,200.00 2900S 18.00 S 52,200.00 3900S 26.00 $101,400.00 2/4 2/20 3900 500 S IS 26.00 5101,400.00 18.00 S 9,000.00 4/2 4900 S 34.00 2400S 2400 4900 S 2400S 800 IS 18.00 18.00 34.00 18.00 34.00 S 43,200.00 S 43,200.00 $166,600.00 S 43,200.00 $ 27,200.00 11/4 4100 S 34.00 $139,400.00 Ending inventory = $ 43200 +$ 27200 = $ 70,400

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 $ 320200 / 11700 $ 27.3675 per unit Ending Inventory 3200* $ 27.3675 per unit $ 87,576 Perpectual System ,Moving Average cost Flow Goods Purchased Cost of Goods Sold Cost per Date # of Units | Unit # of Units Sold Cost per Cost of Goods Unit Sold 1/1 2/4 3900 S 26.00 Inventory Balance # of Units Inventory Cost per Unit Balance Sold 2900S 18.00 S 52,200 2900S 18.00 S 52,200 3900S 26.00 S 101,400 6800S 22.5882S 153,600 2400 S 22.5882S 54,212 2400 S 22.5882S 54,212 4900 S 34.00S 166,600 7300 S 30.2482 S 220,812 3200 $ 30.2482 $ 96,794 4400 S 22.5882 S 99,388 2/20 4/2 4900 S 34.00 11/4 4100 $ 30.2482 $ 124,018

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