Kieso, Intermediate Accounting, 16e Hele Problem 8-6 Marin Company is a multi pr
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Question
Kieso, Intermediate Accounting, 16e Hele Problem 8-6 Marin Company is a multi product firm. Presented below is information concerning one of its products, the Hawkeye. 2/4 Purchase 2/20 Sale 4/2 Purchase 11/4 Sale Date Transaction Quantity Price/Cost $16 24 41 31 45 1/1 Beginning inventory 2,400 3,400 3,900 4,400 3,600 Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit LINK TO TEXT Compute cost of goods sold, assuming Marin uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and 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 Click if you would like to Show Work for this question: Qpen Show Work LINK TO TEXTExplanation / Answer
Ans to average cost per unit = 25.1373 as explained in part e
(a)
Beginning inventory.....................
2,400
Purchases (3,400 + 4,400)............
7,800
Units available for sale.................
10,200
Sales (3,900 + 3,600).....................
(7,500)
Goods on hand..............................
2,700
Periodic FIFO
2,400 X $16 =
$38,400
3,400 X $24 =
81,600
1,700 X $31 =
52,700
7,500
$172,700
(b)
Perpetual FIFO
Same as periodic:
$172,700
(c)
Periodic LIFO
4,400 X $31 =
$136,400
3,100 X $24 =
74,400
7,500
$210,800
(d)
Perpetual LIFO
Date
Purchased
Sold
Balance
1/1
2,400 X $16
=
$38,400
2/4
3,400 X $24 = $81,600
2,400 X $16
}
$120,000
3,400 X $24
2/20
3,400 X $24
}
$89,600
500 X $16
1,900 X $16
=
$ 30,400
4/2
4,400 X $31 =$136,400
1900 X $16
}
$166,800
4,400 X $31
11/4
3,600 X $31
=
$111,600
1,900 X $16
}
$55,200
800 X $31
$201,200
(e)
Periodic weighted-average
2,400 X $16 =
$ 38,400
3,400 X $24 =
81,600
4,400 X $31 =
136,400
7,500
$256,400
÷ 10,200 = $25.1373
X $25.1373
$188,530
(f)
Perpetual moving average
Date
Purchased
Sold
Balance
1/1
2,400 X $16 =
$38,400
2/4
3,400 X $24 = $81,600
5,800 X $20.6897 =
120,000
2/20
3,900 X $20.6897 =
$80,690
1900 X $20.6897 =
39,310
4/2
4,400 X $31 =$136,400
6,300 X $27.8905a =
175,710
11/4
3,600 X $27.8905 =
100,406
2,700 X $27.8905 =
75,304
$181,096
a
1900 X $20.6897 = $ 39,310
4,400 X $31 = 136,400
6,300 $175,710
($175,710 ÷ 6,300 = $27.8905)
(a)
Beginning inventory.....................
2,400
Purchases (3,400 + 4,400)............
7,800
Units available for sale.................
10,200
Sales (3,900 + 3,600).....................
(7,500)
Goods on hand..............................
2,700
Periodic FIFO
2,400 X $16 =
$38,400
3,400 X $24 =
81,600
1,700 X $31 =
52,700
7,500
$172,700
(b)
Perpetual FIFO
Same as periodic:
$172,700
(c)
Periodic LIFO
4,400 X $31 =
$136,400
3,100 X $24 =
74,400
7,500
$210,800
(d)
Perpetual LIFO
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