Assignment 1

Ehlo Company is a multiproduct firm. Presented below is information concerning its Hawkeye product.

Date
Transaction
Quantity
Price/Cost
1/1
Beginning Inventory
1,000
$12
2/4
Purchases
2,000
18
2/20
Sale
2,500
30
4/2
Purchase
3,000
23
11/4
Sale
2,200
33

Required:
1. Compute cost of goods sold from 1/1 through 2/21 under the FIFO cost flow assumption.
2. Compute ending inventory at 2/21 under the FIFO cost flow assumption.
3. Compute cost of goods sold from 1/1 through 2/21 under the LIFO cost flow assumption.
4. Compute ending inventory at 2/21 under the LIFO cost flow assumption.
5. Compute cost of goods sold from 1/1 through 2/21 under the weighted average cost flow assumption.
6. Compute ending inventory at 2/21 under the weighted average cost flow assumption.
7. Compute cost of goods sold from 2/21 through 11/5 under the FIFO cost flow assumption.
8. Compute ending inventory at 11/5 under the FIFO cost flow assumption.
9. Compute cost of goods sold from 2/21 through 11/5 under the LIFO cost flow assumption.
10. Compute ending inventory at 11/5 under the LIFO cost flow assumption.
11. Compute cost of goods sold from 2/21 through 11/5 under the weighted average cost flow assumption.
12. Compute ending inventory at 11/5 under the weighted average cost flow assumption.

I pledge on my honor that I have not given or received any unauthorized assistance on this assignment.

1) Compute cost of goods sold from 1/1 through 2/21 under the FIFO cost flow assumption.

Sales 2500 units @30-------------------------------------75,000
Cost of goods sold 1000 units @12---------------------12,000
Cost of goods sold 1500 units @ 18 --------------------27,000
Total cost of goods ----------------------------------------39,000
Gross profit -------------------------------------------------36,000

2) Compute ending inventory at 2/21 under the FIFO cost flow assumption

Date
Transaction
Quantity
Price/Cost
1/1
Beginning Inventory
1,000
$12
2/4
Purchases
2,000
18
2/20
Sale