Skysong Company manufactures many products for use in the wine industry Presented below is information concerning one of its products, the Orbit. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,600 $29 3/6 Sale 1,000 49 6/26 Purchase 3,500 31 8/2 Purchase 2000 32 10/31 Sale 4,000 51 Compute cost of goods sold, assuming Skysong uses: (Round average cost per unit to 2 decimal places, eg. 2.76 and final answers to O decimal places, e s. 6,548) (a) Periodic system, FIFO cost flow (b) Perpetual system, FIFO cost flow (c) Periodic system, LIFO cost flow (d) Perpetual system, LIFO cost flow (el Periodic system, average-cost flow 5 5 Cost of goods sold
Skysong Company manufactures many products for use in the wine industry Presented below is information concerning one of its products, the Orbit. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,600 $29 3/6 Sale 1,000 49 6/26 Purchase 3,500 31 8/2 Purchase 2000 32 10/31 Sale 4,000 51 Compute cost of goods sold, assuming Skysong uses: (Round average cost per unit to 2 decimal places, eg. 2.76 and final answers to O decimal places, e s. 6,548) (a) Periodic system, FIFO cost flow (b) Perpetual system, FIFO cost flow (c) Periodic system, LIFO cost flow (d) Perpetual system, LIFO cost flow (el Periodic system, average-cost flow 5 5 Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Skysong Company manufactures many products for use in the wine industry Presented below is information concerning one of its
products, the Orbit.
Date
Transaction
Quantity
Price/Cost
1/1
Beginning inventory
1,600
$29
3/6
Sale
1,000
49
6/26
Purchase
3,500
31
8/2
Purchase
2000
32
10/31 Sale
4,000
51
Compute cost of goods sold, assuming Skysong uses: (Round average cost per unit to 2 decimal places, eg. 2.76 and final
answers to O decimal places, e s. 6,548)
(a) Periodic system, FIFO cost flow
(b) Perpetual system, FIFO cost flow
(c) Periodic system, LIFO cost flow
(d)
Perpetual system, LIFO cost flow
5
(el
Periodic system, average-cost flow
Cost of goods sold
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Step 1: Introduce to FIFO, LIFO and Weighted Average Method
VIEWStep 2: Working for cost of goods sold using periodic FIFO Method
VIEWStep 3: Working for cost of goods sold using perpetual FIFO Method
VIEWStep 4: Working for cost of goods sold using periodic LIFO Method
VIEWStep 5: Working for cost of goods sold using perpetual LIFO Method
VIEWStep 6: Working for cost of goods sold using periodic average cost Method
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