Question

Compute cost of goods sold, assuming Waterway 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

The average cost per unit is = 24.7917

The Periodic FIFO =163000

The Perpetual FIFO=163000

The Periodic FIFO = 195600

The Perpetual LIFO =186800

The Periodic weighted average cost flow= 176021

The Perpetual moving average cost flow= 169669

Step-by-step explanation:

Solution

Given that:

The first step to take is to compute average cost per unit

Unit Unit cost Total cost

Beginning inventory 2200 16 35200

Purchase 1 3200 24 76800

Purchase 2 4200 30 126000

The Total 9600 238000

Hence,

The Average cost per unit = 238000/9600 = 24.7917 per unit

Now, we calculate for the cost of goods sold which is given as :

The Periodic FIFO (35200+76800+1700*30) =163000

The Perpetual FIFO=163000

The Periodic LIFO (4200*30+2900*24)=195600

The Perpetual LIFO (76800+500*16+3400*30)=186800

The Periodic average (7100*24.7917)= 176021

The Perpetual (3700*20.7407+3400*27.3320)= 169669

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