Question

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 (a) Your Answer Correct Answer Correct answer iconYour answer is correct. Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ eTextbook and Media Solution Attempts: 3 of 3 used (b) Partially correct answer iconYour answer is partially correct. 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 $

Answer 1

Answer:

Concord Company

1. Average cost per unit = $168,000/7,500 = $22.40

2. Cost of goods sold:

(a) Periodic system, FIFO cost flow $

= Cost of goods available for sale Minus Ending Inventory

= $168,000 - $48,600

= $119,400

(Ending Inventory = 1,800 x $27 = $48,600)

(b) Perpetual system, FIFO cost flow $

= $119,400

(c) Periodic system, LIFO cost flow $

= Cost of goods available for sale Minus Ending Inventory

= $168,000 - $27,300

= $140,700

(Ending Inventory = 1,500 * $14 + 300 * $21 = 27,300)

(d) Perpetual system, LIFO cost flow $

= Cost of goods available for sale - Ending Inventory

= $168,00 - $35,600

= $132,400

= 2,500 * $21 = $52,500

+ 500 * $14    = $7,000

+  2,700 * $27 = $72,900

Total 5,700   =  $132,400

(Ending Inventory = 1,000 * $14 + 800 * 27 = $35,600)

(e) Periodic system, weighted-average cost flow $

= 5,700 * $22.40

= $127,680

(f) Perpetual system, moving-average cost flow $

= 3,000 * $18.375 =  $55,125

+ 2,700 * $25.083 = $67,724.10

Total 5,700 units = $122,849.10

Explanation:

Data about Product Hawkeye:

Date Transaction             Quantity  Price/Cost      Costs  Moving     Sale

                                                                                           Average  Revenue

1/1     Beginning inventory 1,500             $14      $21,000

2/4   Purchase                  2,500               21       52,500   18.375

2/20 Sale                         (3,000)       35                                        $105,000

4/2  Purchase                   3,500              27       94,500  25.083

11/4  Sale                          (2,700)       39                                          105,300

12/31 Ending inventory     1,800

Goods available for sale 7,500                      $168,000

Goods sold                      5,700                                                    $210,300

Average cost per unit = $168,000/7,500 = $22.40