Splish Company is a multi product firm. Presented below is information concernin
ID: 2537557 • Letter: S
Question
Splish Company is a multi product firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,800 $15 2/4 Purchase 2,800 22 2/20 Sale 3,300 37 4/2 Purchase 3,800 29 11/4 Sale 3,000 41
Calculate average-cost per unit.
Compute cost of goods sold,
assuming Splish 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.)
Explanation / Answer
Average Cost per Unit 23.67 a) FIFO Date Particulars Units Cost Amount COGS 1-1 Beginning Inventory 1,800.00 15.00 27,000.00 4/2 Purchase 2,800.00 22.00 61,600.00 2-4 Purchase 3,800.00 29.00 110,200.00 Total 8,400.00 23.67 198,800.00 COGS 6,300.00 23.67 137,900.00 1800*15+2800*22+1700*29 Ending Inventory 2,100.00 23.67 60,900.00 2100*29 COGS 137,900.00 Ending Inventory 60,900.00 c) LIFO Date Particulars Units Cost Amount COGS 1-1 Beginning Inventory 1,800.00 15.00 27,000.00 4/2 Purchase 2,800.00 22.00 61,600.00 2-4 Purchase 3,800.00 29.00 110,200.00 Total 8,400.00 198,800.00 COGS 6,300.00 165,200.00 3800*29+2500*22 Ending Inventory 2,100.00 33,600.00 300*22+1800*15 COGS 165,200.00 Ending Inventory 33,600.00 e) Weighted Average Date Particulars Units Cost Amount COGS 1-1 Beginning Inventory 1,800.00 15.00 27,000.00 4/2 Purchase 2,800.00 22.00 61,600.00 2-4 Purchase 3,800.00 29.00 110,200.00 Total 8,400.00 23.67 198,800.00 COGS 6,300.00 23.67 149,100.00 Ending Inventory 2,100.00 23.67 49,700.00 COGS 149,100.00 Ending Inventory 49,700.00 b) FIFO Date Particulars Units Cost Amount COGS 1-1 Op Bal 1,800.00 15.00 27,000.00 2-4 Purchases 2,800.00 22.00 61,600.00 Total 4,600.00 88,600.00 2-20 COGS 3,300.00 60,000.00 1800*15+1500*22 Total 1,300.00 28,600.00 4-2 Purchases 3,800.00 29.00 110,200.00 Total 5,100.00 138,800.00 11-4 Sales 3,000.00 77,900.00 1300*22+1700*29 Total 2,100.00 60,900.00 2100*29 COGS 137,900.00 Ending Inventory 60,900.00 d) LIFO Date Particulars Units Cost Amount COGS 1-1 Op Bal 1,800.00 15.00 27,000.00 2-4 Purchases 2,800.00 22.00 61,600.00 Total 4,600.00 88,600.00 2-20 COGS 3,300.00 69,100.00 2800*22+500*15 Total 1,300.00 19,500.00 4-2 Purchases 3,800.00 29.00 110,200.00 Total 5,100.00 129,700.00 11-4 Sales 3,000.00 87,000.00 3000*29 Total 2,100.00 42,700.00 800*29+1300*15 COGS 156,100.00 Ending Inventory 42,700.00 f) Moving average Date Particulars Units Cost Amount COGS 1-1 Op Bal 1,800.00 15.00 27,000.00 2-4 Purchases 2,800.00 22.00 61,600.00 Total 4,600.00 19.26 88,600.00 2-20 COGS 3,300.00 19.26 63,560.87 3300*19.26 Total 1,300.00 19.26 25,039.13 4-2 Purchases 3,800.00 29.00 110,200.00 Total 5,100.00 26.52 135,239.13 11-4 Sales 3,000.00 26.52 79,552.43 3000*26.52 Total 2,100.00 26.52 55,686.70 2100*26.52 COGS 143,113.30 Ending Inventory 55,686.70
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