Continuing Problem: Front Row Entertainment}

In addition to developing online fan communities, Cam and Anna believe that they could increase Front Row Entertainment's revenue by selling live-performance DVDs at the concert. Front Row records the following activity between May and August 2018 for one of its artists.

Front Row sells all of its DVDs for \(\$ 15\) each and uses a perpetual inventory system.
\section*{Required:}
1. Compute ending inventory and cost of goods sold using the FIFO and weighted average cost methods. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)
2. Discuss the advantages and disadvantages of each method.
3. Assume that Front Row decides to use FIFO. Prepare the journal entries necessary to record the above transactions. Assume that all purchases and sales were for cash.

\section*{Case

Transcribed Image Text:

Date Activity Number of Units Cost per Unit May 10 Purchase inventory 240 $8.25 25 Sale 180 June 5 Purchase inventory 300 8.75 12 Sale 150 July 5 Sale 135 Aug. 8 Purchase inventory 190 9.25 20 Sale 110