Question
Cheyenne Corp. markets CDs of numerous performing artists. At the beginning of March, Cheyenne Corp. had in beginning inventory2,390CDs with a unit cost of $7.
Cheyenne Corp. markets CDs of numerous performing artists. At the beginning of March, Cheyenne Corp. had in beginning inventory2,390CDs with a unit cost of $7. During March, Cheyenne Corp. made the following purchases of CDs.
March 5 2,030@$8
March 2 15,060@$10
March 13 3,260@$9
March 26 1,800@$11
During March11,470units were sold. Cheyenne Corp. uses a periodic inventory system.
a)Determine the cost of goods available for sale.
The cost of goods available for sale $
b)Calculate Average Cost (Round answer to 3 decimal places, e.g. 5.125.)
Average Cost: $
C.) Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost).(Round answers to 0 decimal places, e.g. 125.)
FIFO LIFO AVERAGE-COST
The ending inventory$
The cost of goods sold$
D.) Which cost flow method results in:
(1) the highest inventory amount for the balance sheet.
- Average Cost, LIFO, OR FIFO
(2) the highest cost of goods sold for the income statement?
- Average Cost, LIFO, OR FIFO
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