1.

Cost of goods purchased:

€175,000 - (€175,000 x 20%) = € 140,000
€140,000 - (€140,000 x 10%) = € 126,000

2. Inventory before adjustments € 1,100,000

FOB Shipping Point, Dec 24 69,000
€ 1,169,000

3. Part M.O. inventory cost, May 31 Assumed: Periodic Inventory

FIFO method: Date Units Unit Cost Total Cost
May-26 1,000 € 24 € 24,000
May-17 1,000 23 23,000
Total 2,000 € 47,000

Average-cost method: Date Units Unit Cost Total Cost

May-01 1,500 € 21 € 31,500
May-09 2,000 22 44,000
May-17 3,500 23 80,500
May-26 1,000 24 24,000
Total 8,000 € 180,000

Weighted-average cost per unit = € 22.50

Ending inventory, May 31 = € 45,000

4. Inventoriable cost for 2015:

Merchandise purchased € 909,400
Purchase returns - 16,500
Freight-in 22,000
Purchase discounts - 6,800
COGAFS € 908,100
a. Periodic system, FIFO cost flow
Beginning inventory 1,000
Purchases 5,000
Goods avaliable for sale 6,000
Sales - 4,700
Ending inventory 1,300

Cost of Goods Sold:

1,000 x €12 = € 12,000
2,000 x €18 = 36,000
1,700 x €23 = 39,100
Total 87,100

b. Perpetual system, FIFO cost flow

Purchased Sold Balance
Date
Units Unit Cost Total Cost Units Unit Cost Total Cost Units
Jan-01 1,000
Feb-04 2,000 € 18 € 36,000 1,000
2,000
Feb-20 1,000 € 12 € 12,000 500
1,500 18 27,000
Apr-02 3,000 23 69,000 500
3,000
Nov-04 500 18 9,000 1,300
1,700 23 39,100

Cost of Goods Sold = € 87,100

c. Periodic system, weighted-average cost flow

Date Units Unit Cost Total Cost
Jan-01 1,000 € 12 € 12,000
Feb-04 2,000 18 36,000
Apr-02 3,000 23 69,000
Total goods 6,000 € 117,000
available

Weighted-average cost per unit = € 19.50

Ending inventory in units = 1,300
Ending inventory = € 25,350

Cost of goods available for sale € 117,000

Deduct: Ending inventory - 25,350
Cost of goods sold 91,650

d. Perpetual system, moving-average cost flow

Purchased Sold Balance
Date
 Date
Units Unit Cost Total Cost Units Unit Cost Total Cost Units
Jan-01 1,000
Feb-04 2,000 € 18 € 36,000 3,000
Feb-20 2,500 € 16 € 40,000 500
Apr-02 3,000 23 69,000 3,500
Nov-04 2,200 22 48,400 1,300

Cost of Goods Sold = 88,400

 Balance
Unit Cost Total Cost
€ 12 € 12,000
12 12,000
18 36,000
18 9,000

18 9,000
23 69,000
23 29,900

Balance
 Unit Cost Total Cost
€ 12 € 12,000
16 48,000
16 8,000
22 77,000
22 28,600