Sandhill Company is a multi product firm. Presented below is information concern

Question

Sandhill 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 2,200 $16 2/4 Purchase 3,200 24 2/20 Sale 3,700 40 4/2 Purchase 4,200 30 11/4 Sale 3,400 44 Collapse question part (a) Incorrect answer. Your answer is incorrect. Try again. Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ Entry field with incorrect answer Show Solution Link to Text By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 3 of 3 used Collapse question part (b) Compute cost of goods sold, assuming Sandhill 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 $

Explanation / Answer

COST OF GOODS AVAILABLE FOR SALE: Date Units Rate Total Cost Jan-01 2200 16 35200 Feb-04 3200 24 76800 Apr-02 4200 30 126000 9600 238000 SALE: Feb-20 3700 Nov-04 3400 7100 Balance Units 2500 ANSWERS: Average cost per unit = 238000/9600 = $       24.7917 Cost of goods sold (AVG COST) = 7100*24.7917 = $      1,76,021 COST OF GOODS SOLD: PERIODIC SYSTEM - FIFO: =2200*16+3200*24+1700*30 = $      1,63,000 PERPETUAL SYSTEM - FIFO: = 2200*16+1500*24+1700*24+1700*30= $      1,63,000 PERIODIC SYSTEM- LIFO" = 4200*30+2900*24 = $      1,95,600 PERPETUAL SYSTEM - LIFO: = 3200*24+500*16+3400*30 = $      1,86,800 PERIODIC SYSTEM - WEIGHTED AVERGE: = 7100*24.7917 = $      1,76,021 PERPETUAL SYSTEM - WEIGHTED AVERAGE: Feb 04 - Weighted average = (2200*16+3200*24)/5400 = $       20.7407 Apr 2 -Weighted average = (1700*20.7407+4200*30)/5900= $       27.3321 Feb-20 Cost of goods sold = 3700*20.7407= $         76,741 Nov-04 Cost of goods sold = 3400*27.3321 = $         92,929 COGS Weighted average-Perpetual system $      1,69,670

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