Problem 86 Part Level Submission Date Transaction Quantity P

Problem 8-6 (Part Level Submission)

Date

Transaction

Quantity

Price/Cost

(a)

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(b)

Problem 8-6 (Part Level Submission) Bridgeport 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 2,400 $16 2/4 Purchase 3,400 24 2/20 Sale 3,900 41 4/2 Purchase 4,400 31 11/4 Sale 3,600 45

Solution

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 2400 16 38400 4-Feb 3400 24 81600 2400 16 38400 3400 24 81600 20-Feb 2400 16 38400 1500 24 36000 1900 24 45600 2-Apr 4400 31 136400 1900 24 45600 4400 31 136400 4-Nov 1900 24 45600 1700 31 52700 2700 31 83700 TOTAL 7800 218000 7500 172700 2700 83700 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 2400 16 38400 4-Feb 3400 24 81600 2400 16 38400 3400 24 81600 20-Feb 3400 24 81600 500 16 8000 1900 16 30400 2-Apr 4400 31 136400 1900 16 30400 4400 31 136400 4-Nov 3600 31 111600 1900 16 30400 800 31 24800 TOTAL 7800 218000 7500 201200 2700 55200 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 2400 16 38400 4-Feb 3400 24 81600 2400 16 38400 3400 24 81600 Average 5800 20.69 120000 20-Feb 3900 20.69 80691 1900 20.69 39309 2-Apr 4400 31 136400 1900 20.69 39309 4400 31 136400 Average 6300 27.89 175709 4-Nov 3600 27.89 100404 2700 27.89 75305 TOTAL 7800 218000 7500 181095 2700 75305 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 2400 16 38400 2400 16 38400 Purchasse 4-Feb 3400 24 81600 3400 24 81600 2-Apr 4400 31 136400 1700 31 52700 2700 31 83700 TOTAL 10200 256400 7500 172700 2700 83700 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 2400 16 38400 2400 16 38400 Purchasse 4-Feb 3400 24 81600 3100 24 74400 300 24 7200 2-Apr 4400 31 136400 4400 31 136400 TOTAL 10200 256400 7500 210800 2700 45600 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 2400 16 38400 Purchasse 4-Feb 3400 24 81600 2-Apr 4400 31 136400 TOTAL 10200 25.14 256400 7500 25.14 188550 2700 25.14 67850 Req a: Average cost per unit: $ 25.14 per unit Req b: a. Periodic FIFO: 172700 b. Perpetual FIFO: 172700 c. Periodic LIFO: 210800 d. Perpetual LIFO: 201200 e. Periodic Average: 188550 f. Perpetual Average: 181095