Mark Joseph N.

Acebuche
BSA 302 Intermediate accounting 04 Activity 2
I. Multiple Choice (10 items x 3 points)
1. D
2. A
3. B
4. C
5. C
6. D
7. A
8. B
9. D
10. A
II. Problem Solving (4 items x 5 points)
a. Periodic system, FIFO cost method.
Ending Inventory   1,500  
   
Most recent cost P 22 1,500 units 33,000
Cost of ending inventory   33,000
b. Perpetual system, FIFO cost method.

Purchases Sales Balance

Total
Date Units Cost Total Cost Units Cost Cost Units Cost Total Cost
Jan, 1             1,000 12 12,000

1000 12 12,000
Feb, 4 2,000 18 36,000       2000 18 36,000

Feb, 1,000 12 12,000

20       1,500 18 27,000 500 18 9,000

April, 500 18 9,000

2 3,000 22 66,000       3,000 22 66,000

500 18 9,000
Nov, 4       1,500 22 33,000 1,500 22 33,000
Cost of Goods Sold Cost of Ending Inventory
        81,000 33,000

C. Periodic system, average-cost method:

Beginning Inventory ( 1000 x 12)   12,000
Purchases:  
Feb, 4 (2,000 x 18) 36,000  
Feb, 20 (3,000 x 22) 66,000 102,000
Cost of Goods Available for Sale 114,000
Divide by total units for sale 6,000
Average cost per unit (rounded) P 19
     

Total Remaining Units 1,500 Multiply by the average cost per unit 19, giving us the cost
of ending inventory of 28,500.

D. Perpetual system, moving-average-cost method.

 Purchase Sales Balance
Date Units Cost Total Units Cost Total Units Cost Total
Jan, 1             1,000 12 12,000
Feb, 4 2,000 18 36,000       3,000 16 48,000
Feb, 20       2,500 16 40,000 500 16 8,000
April, 2 3,000 22 66,000       3,500 21.14 74,000
Nov, 4       2,000 21.14 42,280 1,500 21.14 31,720
Cost of goods sold 82,280 Ending Inventory P31,720