Pillsbury Company?s manufactures many products for use in the airline industry. Presented below is information concerning one of its products, the Orbit.

Required:

A. Compute the cost of goods sold of the following bases. Assume that the company used the periodic system to report its inventory. Carry unit costs to the nearest cent.

(1) First-in, first-out (FIFO).

(2) Last-in, first-out (LIFO).

(3) Average cost.

B. Repeat your calculations in (1), (2), and (3) above, under the assumption that the company used the perpetual system to report its inventory. Carry average unit costs to at least two decimal places.

Transcribed Image Text:

Date 1/1 3/6 6/26 8/2 10/31 Transaction Beginning Sale Purchase Purchase Sale Quantity 1,600 1,000 3,500 2,000 4,000 Price/Cost $31 50 33 34 52 Date 1/1 3/6 6/26 8/2 10/31 Transaction Beginning Sale Purchase Purchase Sale Quantity 1,600 1,000 3,500 2,000 4,000 Price/Cost $31 50 33 34 52

Answer rating: 100% (QA)

A Total unit sold5000 1 FIFO Unit cost per unit total cost 1600 31 49600 34... View the full answer