Probiem 8-6 Sandhill Company is a multi product firm. Presented below is informa
ID: 2559726 • Letter: P
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Probiem 8-6 Sandhill Company is a multi product firm. Presented below is information concerning one of ts pr oducts, the Hawkeye. Date Transaction Quantity Price/Cost 2/4 Purchase 2/20 Sale 4/2 Purchase 11/4 Sale 1/1 Beginning inventory 2,200 3,200 3,700 4,200 3,400 $16 24 40 30 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 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 (2) Perpetual system, moving-average cost flowExplanation / Answer
a. FIFO (Periodic) Units Cost per Unit Total Beginning Inventory 2200 $ 16 $ 35,200 Purchases Feb-04 3200 $ 24 $ 76,800 Apr-02 4200 $ 30 $ 1,26,000 Total Purchases 7400 $ 2,02,800 Goods Availbale for Sale 9600 $ 2,38,000 Cost of Goods Sold Feb-20 Units from Beginning Inventory 2200 $ 16 $ 35,200 Units from Feb 04 Inventory 1500 $ 24 $ 36,000 Nov-04 Units from Feb 04 Inventory 1700 $ 24 $ 40,800 Units from Apr 02 Inventory 1700 $ 30 $ 51,000 Total Cost of Goods Sold 7100 $ 1,63,000 Ending Inventory Units from Apr 02 Inventory 2500 $ 30 $ 75,000 Total Ending Inventory 2500 $ 75,000 b. FIFO (Perpectual) Units Cost per Unit Total Beginning Inventory 2200 $ 16 $ 35,200 Purchase Feb-04 3200 $ 24 $ 76,800 Sales Feb-20 Units from Beginning Inventory 2200 $ 16 $ 35,200 Units from Feb 04 Inventory 1500 $ 24 $ 36,000 Balance Inventory Units from Feb 04 Inventory 1700 $ 24 $ 40,800 Purchase Apr-02 4200 $ 30 $ 1,26,000 Sales Nov-04 Units from Feb 04 Inventory 1700 $ 24 $ 40,800 Units from Apr 02 Inventory 1700 $ 30 $ 51,000 Balance Inventory Units from Apr 02 Inventory 2500 $ 30 $ 75,000 Total Cost of Goods Sold 7100 $ 1,63,000 Ending Inventory Units from Apr 02 Inventory 2500 $ 30 $ 75,000 Total Ending Inventory 2500 $ 75,000 c. LIFO (Periodic) Units Cost per Unit Total Beginning Inventory 2200 $ 16 $ 35,200 Purchases Feb-04 3200 $ 24 $ 76,800 Apr-02 4200 $ 30 $ 1,26,000 Total Purchases 7400 $ 2,02,800 Goods Availbale for Sale 9600 $ 2,38,000 Cost of Goods Sold Feb-20 Units from Feb 04 Inventory 3200 $ 24 $ 76,800 Units from Beginning Inventory 500 $ 16 $ 8,000 Nov-04 Units from Apr 02 Inventory 3400 $ 30 $ 1,02,000 Total Cost of Goods Sold 7100 $ 1,86,800 Ending Inventory Units from Feb 04 Inventory 1700 $ 16 $ 27,200 Units from Apr 02 Inventory 800 $ 30 $ 24,000 Total Ending Inventory 800 $ 24,000 d. LIFO (Perpectual) Units Cost per Unit Total Beginning Inventory 2200 $ 16 $ 35,200 Purchase Feb-04 3200 $ 24 $ 76,800 Sales Feb-20 Units from Feb 04 Inventory 3200 $ 24 $ 76,800 Units from Beginning Inventory 500 $ 16 $ 8,000 Balance Inventory Units from Beginning Inventory 1700 $ 16 $ 27,200 Purchase Apr-02 4200 $ 30 $ 1,26,000 Sales Nov-04 Units from Apr 02 Inventory 3400 $ 24 $ 81,600 Balance Inventory Units from Beginning Inventory 1700 $ 16 $ 27,200 Units from Apr 02 Inventory 800 $ 30 $ 24,000 Total Cost of Goods Sold 7100 $ 1,66,400 Ending Inventory Units from Beginning Inventory 1700 $ 16 $ 27,200 Units from Apr 02 Inventory 800 $ 30 $ 24,000 Total Ending Inventory 1700 $ 27,200 e. Wighted Average Cost (Periodic) Units Cost per Unit Total Beginning Inventory 2200 $ 16.00 $ 35,200 Purchase on Feb-04 3200 $ 24.00 $ 76,800 Purchase on Apr-02 4200 $ 30.00 $ 1,26,000 Average Cost 9600 $ 24.79 $ 2,38,000 Sale on Feb-20 3,700 $ 24.79 $ 91,729 Sale on Nov-04 3,400 $ 24.79 $ 84,292 Balance 2,500 $ 24.79 $ 61,979 Total Purchases 7,400 $ 2,02,800 Goods Availbale for Sale 9,600 $ 2,38,000 Cost of Goods Sold 7,100 $ 1,76,021 Ending Inventory 2,500 $ 24.79 $ 61,979 f. Wighted Average Cost (Periodic) Units Cost per Unit Total Beginning Inventory 2200 $ 16.00 $ 35,200 Purchase on Feb-04 3200 $ 24.00 $ 76,800 Average Cost 5400 $ 20.74 $ 1,12,000 Sale on Feb-20 3,700 $ 20.74 $ 76,741 Balance 1,700 $ 20.74 $ 35,259 Purchase on Apr-02 4,200 $ 30.00 $ 1,26,000 Average Cost 5,900 $ 27.33 $ 1,61,259 Sale on Nov-04 3,400 $ 27.33 $ 92,929 Balance 2,500 $ 27.33 $ 68,330 Total Purchases 7,400 $ 2,02,800 Cost of Goods Sold 7,100 $ 1,69,670 Ending Inventory 2,500 $ 27.33 $ 68,330 Cost of Goods Sold a. FIFO (Periodic) $ 1,63,000 b. FIFO (Perpectual) $ 1,63,000 c. LIFO (Periodic) $ 1,86,800 c. LIFO (Perpectual) $ 1,66,400 f. Wighted Average Cost (Periodic) $ 1,76,021 f. Wighted Average Cost (Perpectual) $ 1,69,670
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