Pina Colada Corp. uses a perpetual inventory system. Data for product E2-D2 incl

Question

Pina Colada Corp. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below. Number of Units Unit Price Date May 7 July 28 On June 1, Pina Colada Corp. sold 29 units, and on August 27, 33 more units 58 $17 XYour answer is incorrect. Try again. Calculate the average cost. (Round answers to 3 decimal places, e.g. 5.125.) June 1 sale 493 Aug. 27 sale: xl Your answer is incorrect. Try again Compute the cost of goods sold using FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST Cost of goods sold

Explanation / Answer

Calculate average cost :

June 1 Sale : $17 per unit

Aug 27 sale : (29*17+33*22)/62 = $19.661 per unit

Calculate cost of goods sold

FIFO LIFO Average cost Cost of goods sold (29*17+29*17+4*22)= 1074 (29*17+33*22) = 1219 (29*17+33*19.661) = 1142

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