Ehlo Company is a multiproduct firm. Presented below is information concerning o

Question

Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Your answer is correct. Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit $ By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 4 of 5 used You have surpassed the number of attempts to earn Maximum Points for this question. For this attempt, and any subsequent attempt(s), you will earn points according to the Point Potential policy set by your instructor. Your answer is partially correct. Try again. Compute cost of goods sold, assuming Ehlo uses: (Round average cost per unit to 2 decimal places, e.g. 2.76 and final answers to 0 decimal places, e.g. 6,548.)

Explanation / Answer

Answer e. Calculation as per weighted average method:

So cost of goods sold = $84986 + 104546

= $189532

*Total cost/Total Units

Answer f. Calculation by moving average method

Moving average rate = (Opening inventory*Cost per unit)+(Purchased quantity*Purchase price)/(Opening units+Purchasedunits)

=(2420*$17)+(3420*$25)+(4420*$32)/(2420+3420+4420)

= $268080/10260

=$26.13

Cost of goods sold = (3920+3620)*$26.13

= $197020.20 or $19020

Date Particulars Quantity Unit cost Total Amount 1/1 Opening inventory 2420 17 41140 2/4 Purchases 3420 25 85500 Balance 5840 21.68* 126640 2/20 Cost of units sold 3920 21.68 84986 Balance 1920 21.68* 41654 4/2 Purchases 4420 32 141440 Balance 6340 28.88* 183094 11/4 Cost of units sold 3620 28.88 104546 Closing stock 2720 28.88 78548

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.