Question

Martinez 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 2,200 $16
2/4 Purchase 3,200 24
2/20 Sale 3,700 40
4/2 Purchase 4,200 30
11/4 Sale 3,400 44

Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.)

Average-cost per unit
$

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Compute cost of goods sold, assuming Martinez 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.)

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
$

Answer 1

Average cost per unit

Cost of goods available for sale : 2200*16+3200*24+4200*30 = 238000

units available for sale : 2200+3200+4200 = 9600

average cost per unit = 238000/9600 = 24.7917

a) Periodic system, FIFO

Cost of goods sold = 2200*16+3200*24+1700*30 = 163000

b) Perpetual system, FIFO

Cost of goods sold = 2200*16+1500*24+1700*24+1700*30 = 163000

c) Periodic system, LIFO

Cost of goods sold = 4200*30+2900*24 = 195600

d) Perpetual system, LIFO

Cost of goods sold = 3400*30+800*30+2900*24 = 195600

e) Periodic system, weighted-average cost flow

Cost of goods available for sale : 2200*16+3200*24+4200*30 = 238000

units available for sale : 2200+3200+4200 = 9600

average cost per unit = 238000/9600 = 24.7917

f) Perpetual system, moving-average cost flow

Cost of goods sold = 3700*40+3400*44 = 297600