FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Windsor Company manufactures many products for use in the airline industry. Presented below is information concerning one of its
products, the Orbit.
Date
1/1
3/6
6/26
8/2
10/31
Transaction
Beginning inventory
Sale
Purchase
Purchase
Sale
Quantity
1,600
1,000
3,500
2,000
4,000
Price/Cost
$31
49
33
34
51
Compute cost of goods sold, assuming Windsor uses: (Round average cost per unit to 2 decimal places, e.g. 2.76 and final answers to 0
decimal places, e.g. 6,548.)
Transcribed Image Text:Windsor Company manufactures many products for use in the airline industry. Presented below is information concerning one of its
products, the Orbit.
Date
1/1
3/6
6/26
8/2
10/31
Transaction
Beginning inventory
Sale
Purchase
Purchase
Sale
Quantity
1,600
1,000
3,500
2,000
4,000
Price/Cost
$31
49
33
34
51
Compute cost of goods sold, assuming Windsor uses: (Round average cost per unit to 2 decimal places, e.g. 2.76 and final answers to 0
decimal places, e.g. 6,548.)
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Step 1: Inventory system:
VIEW Step 2: a)Calculation of Cost of Goods sold using Periodic system, FIFO cost flow,
VIEW Step 3: b) Calculation of Cost of Goods sold using Perpetual system, FIFO cost flow:
VIEW Step 4: c)Calculation of Cost of Goods sold using Periodic system, LIFO cost flow:
VIEW Step 5: d) Calculation of Cost of Goods sold using Perpetual system, LIFO cost flow:
VIEW Step 6: Calculation of Cost of Goods sold using Periodic system, Average cost flow
VIEW Step 7: Calculation of Cost of Goods sold using Perpetual system, moving average cost flow:
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