Question

Ehlo Cmpany is a multiproduct frm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning Inventory 1,000 $12 2/4 Purchase 2,000 18 2/20 Sale 2,500 30 4/2 Purchase 3,000 23 11/4 Sale 2,200 33 Required: Compute the value of ending inventory and cost of goods sold, assuming Ehlo uses: a) perpetual system, FIFO cost flow. b) perpetual system, LIFO cost flow. c) perpetual system, moving-average cost flow.

Answer 1

FIFO 87100

LIFO 92600

AVERAGE 88400

Step-by-step explanation:

a)FIFO 1000 12 1000 12 12000

2000 18 1500 18 27000

2500

0 12 0 12 0

500 18 500 18 9000

3000 23 1700 23 39100

2200 87100

b)LIFO 1000 12 500 12 6000

2000 18 2000 18 36000

2500

500 12 0 12 0

0 18 0 18 0

3000 23 2200 23 50600

2200 92600

c)average 1000 12 12000 500

2000 18 36000 2000

3000 16 48000 2500 16 40000

500 16 8000 0

3000 23 69000 0

3500 22 77000 2200 22 48400

88400