Question
Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,520 of Uniques CDs with a
|
|
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. 1,250.)
FIFO | LIFO | AVERAGE-COST | |
The ending inventory | $ | $ | $ |
The cost of goods sold | $ | $ | $ |
Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?
(1) | FIFo, LIFO OR AVE COST produces the highest inventory amount, $ . |
(2) | FIFO, LIFO OR AVE COST
produces the highest cost of goods sold, $ . |
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