Problem 8-06 Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,000 $12 2/4 Purchase 2,000 18 2/20 Sale 2,500 30 4/2 Purchase 3,000 23 11/4 Sale 2,200 33 Correct answer. Your answer is correct. Calculate average-cost per unit. (Round answer to 4 decimal places, e. g. 2.7613.) Average-cost per unit $Entry field with correct answer 19.5 SHOW SOLUTION LINK TO TEXT Correct answer. Your answer is correct. Compute cost of goods sold, assuming Ehlo 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 $Entry field with correct answer 87100 (b) Perpetual system, FIFO cost flow $Entry field with correct answer 87100 (c) Periodic system, LIFO cost flow $Entry field with correct answer 99600 (d) Perpetual system, LIFO cost flow $Entry field with correct answer 92600 (e) Periodic system, weighted-average cost flow $Entry field with correct answer 91650 (f) Perpetual system, moving-average cost flow $Entry field with correct answer 88400 Click if you would like to Show Work for this question: Open Show Work

Average-cost per unit $19.50

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

Explanation:

Date     Transaction                   Quantity          Price/Cost

1/1          Beginning inventory      1,000                 $12

2/4        Purchase                       2,000                 $18

2/20      Sale                               2,500                $30

4/2        Purchase                       3,000                $23

11/4        Sale                               2,200                $33

total                                             1,300

Date     Transaction                   Quantity          Price/Cost

1/1          Beginning inventory      1,000                 $12

2/4        Purchase                       2,000                 $18

4/2        Purchase                       3,000                $23

total                                             6,000             $19.50

using periodic inventory system:

Date     Transaction                   Quantity          Price/Cost

1/1          Beginning inventory      1,000                 $12

2/4        Purchase                       2,000                 $18

4/2        Purchase                       3,000                $23

total                                             1,300

COGS under FIFO = (1,000 x $12) + (2,000 x $18) + (1,700 x $23) = $87,100

COGS under LIFO = (3,000 x $23) + (1,700 x $18) = $99,600

COGS under weighted average = 4,700 x $19.50 = $91,650

using perpetual inventory system:

Date     Transaction                   Quantity          Price/Cost

1/1          Beginning inventory      1,000                 $12

2/4        Purchase                       2,000                 $18

2/20      Sale                               2,500                $30

4/2        Purchase                       3,000                $23

11/4        Sale                               2,200                $33

COGS under FIFO = (1,000 x $12) + (1,500 x $18) + (500 x $18) + (1,700 x $23) = $87,100

COGS under LIFO = (2,000 x $18) + (500 x $12) + (2,200 x $23) = $92,600

COGS under weighted average = (2,500 x $16) + (2,200 x $22) = $88,400

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.