Question

The accounting records of Concord Corporation show the following data. Beginning inventory 2,820 units at $7 Purchases 8,120 units at $9 Sales 9,838 units at $12 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter Average unit cost in dollars rounded to 3 decimal places per unit eTextbook and Media List of Accounts Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places

Answer 1

Answer:

1. $82,902

2. $85,106

3. $8.48 per unit

4. $83,426

Explanation:

Calculation to Determine cost of goods sold using the FIFO method, the LIFO method, and the average-cost method

1. With FIFO Method the Purchases that was made earlier will be sold first.

Cost of goods sold = (2,820 x $7) + (7,018x $9)

(2,820-9,838=7,018)

Cost of goods sold= $19,740+ $63,162

Cost of goods sold= $82,902

2. With LIFO Method Purchases that are made last will be sold first.

Cost of goods sold = (8,120 x $9) + (1,718 x $7)

(8,120-9,838=1,718)

Cost of goods sold= $73,080 + $12,026

Cost of goods sold = $85,106

3. Using Average cost method

Average cost per unit = [(2,820 x $7) + (8,120 x $9)]/(2,820 + 8,120)

Average cost per unit=$19,740+$73,080/10,940

Average cost per unit= $92,820/10,940

Average cost per unit=$8.48 per unit

4. Cost of goods sold = 9,838 x $8.48

Cost of goods sold= $83,426