E6-20 P6-2A P6-10A P6-2B P6-10B P6-28 Deftermine cost of foods sold and ending intory arting FIFD LIFO, and average cost with analisis Xinxin Detribution markets CDs of the performing artist, Carly. At the beginning of March, Xinxin had in beginning inventory 1.500 Carly CDs with a unit cost of 57. During March Xinxin made the following purchases of Carly CDs. 3,000 58 March 21 4.000 a $10 March 13 4,500 59 March 26 2.500 SI March lib) During March, 12,000 units were sold. Xinxin uses a periodic inventory system Instructions (a) Determine the cost of goods available for sale. 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). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average cost per unit to 3 decimal places.) lic) Which cost flow methods results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" (a) Total Cost Date Mar! 5 13 21 26 COST OF GOODS AVAILABLE FOR SALE Explanation Units Unit Cost Beginning inventory Value Value Purchase Valoe Value Purchase Value Value Purchase Vlag Value Purchase Value Value Total ? ? ? (b) (1) FIFO Total Cost Date Mar 26 21 Ending Inventory Units Unit Cost Value Valee Value Value 2 2 (b) (2) Cost of Goods Sold Cost of goods available for sale Less: Ending inventory Cost of goods sold Value Value 2 Total Cost Date Mar 1 S 13 21 Proof of Cost of Goods Sold Units Unit Cost Value Value Value Value Value Value Value Value 2 ? (b) (1) LIFO Date Mar 1 5 Ending Inventory Units Unit Cost Value Value Value Value ? Total Cost ? ? ? (b) (2) Cost of Goods Sold Cost of goods available for sale Less: Ending inventory Cost of goods sold Value Value ? Total Cost Date Mar 26 21 13 5 Proof of Cost of Goods Sold Units Unit Cost Value Value Value Value Value Value Value Value ? ? ? ? (b) (1) AVERAGE COST Total cost Value Total units available Value Average cost ? *Round average cost per unit to 3 decimal places. Units Value Ending Inventory Unit Cost Value Total Cost Value Cost of Goods Sold Cost of goods available for sale Less: Ending inventory Cost of goods sold Value Value ? After you have completed the requirements of P6-2B, consider these additional questions. Answers are on the other tab in this file. 1. Suppose that number of units sold decreased to 11,000. What is the impact on ending inventory and cost FIFO method is used? Suppose that number of units sold increased to 11,000. What is the impact on ending inventory and cost LIFO method is used? 3. Suppose that number of units sold increased to 11,000. What is the impact on ending inventory and cost average cost method is used
