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Kieso, Intermediate Accounting, 16e Hele Problem 8-6 Marin Company is a multi pr

ID: 2438170 • Letter: K

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 TEXT

Explanation / 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