Question

Skysong 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		1,600		$14
2/4		Purchase		2,600		22
2/20		Sale		3,100		36
4/2		Purchase		3,600		28
11/4		Sale		2,800		40

Round answers to the 4th decimal and give explanations please on how to get each one

				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

Available for sale Ans. Total Date Units Rate $14.00 $22,400 $57,200 $100,800 1-Jan 1600 $22.00 4-Feb 2600 $28.00 3600 2-Аpr $180,400 Cost of goods available for sale 7800 Average cost per unit Total cost of goods available for sale/ Total units available $180,400/ 7,800 $23.1282 per unit Units sold (3,1002,800) 5,900 units + Periodic FIFO: Ans. A Total Date Units Rate $14.00 $22,400 $57,200 $47,600 $127,200 1-Jan 1600 $22.00 4-Feb 2600 $28.00 2-Аpr 1700 Cost of goods sold 5900

Perpetual FIFO: Ans, B Purchase Cost of goods sold Balance Total cost Total cost Total cost Date Quantity Rate Quantity Rate Quantity Rate $14.00 $22,400 $57,200 $14.00 $22,400 $22,400 1-Jan 1600 1600 $22.00 $14.00 4-Feb 2600 1600 $22.00 $57,200 2600 $14.00 $22,400 $33,000 20-Feb 1600 $22.00 $22.00 $24,200 $24,200 $100,800 1500 1100 1100 $28.00 $100,800 $22.00 2-Apr 3600 $28.00 3600 $22.00 $24,200 $47,600 $127,200 4-Nov 1100 $28.00 $28.00 $53,200 1700 1900 $53,200 Ending inventory *In FIFO method the units that have purchased first, are released the first one and the ending inventory units remain from last purchases. Total Cost of goods sold Total Periodic LIFO: Ans, C Date Units Rate $100,800 $50,600 3600 $28.00 2-Apr $22.00 4-Feb 2300 5900 $151,400 Cost of goods sold

Ans, D Perpetual LIFOO: Cost of goods sold Purchase Balance Total cost Total cost Quantity Total cost Date Rate Quantity Rate Quantity Rate $14.00 $22.00 $14.00 $22,400 $57,200 $22,400 $22,400 $57,200 1-Jan 1600 1600 $14.00 4-Feb 2600 1600 $22.00 2600 $22.00 $57,200 $7,000 20-Feb 2600 $14.00 $14.00 $15,400 $15,400 $100,800 $15,400 500 1100 $28.00 $100,800 $14.00 2-Apr 3600 1100 $28.00 3600 $28.00 $78,400 $14.00 4-Nov 2800 1100 800 $28.00 $22,400 $37,800 Cost of goods sold $142,600 Ending inventory Total In LIFO method the units that have purchased last, are released the first one and ending inventory units remains from the first purchase. Periodic Weighted Average: Ans. E Cost of goods sold = No. of units sold Average cost per unit 5,900 $23.1282 $136,456 (rounded)

Perpetual Weighted average: Ans. F Purchase Cost of goods sold Balance Total cost Total cost Total cost Date Quantity Rate Quantity Rate Quantity Rate $14.00 $22,400 $57,200 $14.00 $22,400 1-Jan 1600 1600 $22.00 $18.9524 $79,600 4-Feb 2600 4200 $18.9524 $58,752 $18.9524 $20,848 $121,648 $49,177 20-Feb 3100 1100 $28.00 $100,800 $25.8825 2-Apr 3600 4700 $25.8825 $25.8825 $72,471 4-Nov 2800 1900 $131,223 Ending inventory $49,177 Total Cost of goods sold Average cost per unit on Purchase date (Cost of balance Cost of purchase) (Units of balance Units of purchase) Average cost per unit on Sales date (Cost of balance Cost of sales)/ (Units of balance Units of sales)