Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Junoon Distribution markets CDs of the performing artist Bahadur Ali. At the beginning of October, Junoon had in beginning inventory 1103 CDs at $6.7 each.

Junoon Distribution markets CDs of the performing artist Bahadur Ali. At the beginning of October, Junoon had in beginning inventory 1103 CDs at $6.7 each. Junoon purchased Bahadur Ali 3634 CDs on Oct 3rd at $7.5, 4137 CDs on Oct 9th at $8.6, 2100 CDs on Oct 19th at $10.5 and 2121 CDs on Oct 25th at $11.3. Junoon sold 2123 CDs on Oct 4th, 2702 CDs on Oct 10th, 2754 CDs on Oct 20th and 2353 on Oct 26th. Part A - Under periodic inventory system, calculate (1) Cost of goods available for sale; (2) ending inventory in units Blank 1. Calculate the answer by read surrounding text. (3) ending inventory value using FIFO, LIFO and Average methods; (4) Cost of goods sold under FIFO, LIFO and Average methods, (5) Prove cost of goods sold. (6) Which cost flow method results in (i) the highest inventory amount for the balance sheet and (ii) the highest cost of goods sold for the income statement?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 17 - Off-Balance-Sheet Shams

Authors: Kate Mooney

1st Edition

0071719393, 9780071719391

More Books

Students also viewed these Accounting questions

Question

=+6 Are there to be action/research/collaborative change methods?

Answered: 1 week ago

Question

How do people develop skills?

Answered: 1 week ago