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

Answer:

FIFO        87100

LIFO        92600

AVERAGE 88400

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