Question
Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 5,320 of Uniques CDs with a
Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 5,320 of Uniques CDs with a unit cost of $7. During October, Glee made the following purchases of Uniques CDs.
Oct. 3 | 6,650 | @ | $8 | Oct. 19 | 7,980 | @ | $10 | |||
Oct. 9 | 9,310 | @ | $9 | Oct. 25 | 10,640 | @ | $11 |
During October, 28,994 units were sold. Glee uses a periodic inventory system.
a) Determine the cost of goods available for sale.
b) Calculate the cost per unit. (round to 2 decimals)
c) Determine (1) the ending inventroy and (2) the cost of goods sold under FIFO, LIFO, and Average-Cost. (round to 0 decimals)
d) 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? And the amounts that go with them?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started