Question
Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 4,800 of Uniques CDs with a
Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 4,800 of Uniques CDs with a unit cost of $7. During October, Glee made the following purchases of Uniques CDs.
October 3 - 6,000 @ $8
October 9- 8,500 @ $9
October 19-7,000 @ $10
October 25-9500 @ $11
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).
During October, 26,000 units were sold. Glee uses a periodic inventory system.
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