P6.2 Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis. Mullins Distribution markets CDs of numerous performing artists. At the beginning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $6.50. During March, Mullins made the following purchases of CDs. During March 12,000 units were sold. Mullins uses a purpetual inventory system. Instructions a. Determine the cost of goods available of sale. b. 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. (Note: For average-cost, round cost per unit to three decimal places.) c. 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 formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells. a. Cost of goods available for sale b. 1. Ending Inventory FIFO \begin{tabular}{ll|} b. 2. & Cost of Goods Sold \\ Cost of goods available for sale \\ Less: Ending inventory \\ \hline Cost of goods sold & \\ \hline \end{tabular} \begin{tabular}{ll|} \hline & \multicolumn{1}{l|}{ AVERAGE-COST } \\ \hline Goods available for sale & \\ \hline Units available for sale & \\ \hline Average cost per unit & \\ \hline \end{tabular} b. 1. Ending Inventory \begin{tabular}{|l|l|l|} \hline Units & Unit Cost & Total Cost \\ \hline \hline & & \\ \hline \hline \end{tabular} When you have completed this problems, respond to the additional question on the P6.2 Add Ques worksheet. P6.2 Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis. Mullins Distribution markets CDs of numerous performing artists. At the beginning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $6.50. During March, Mullins made the following purchases of CDs. During March 12,000 units were sold. Mullins uses a purpetual inventory system. Instructions a. Determine the cost of goods available of sale. b. 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. (Note: For average-cost, round cost per unit to three decimal places.) c. 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 formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells. a. Cost of goods available for sale b. 1. Ending Inventory FIFO \begin{tabular}{ll|} b. 2. & Cost of Goods Sold \\ Cost of goods available for sale \\ Less: Ending inventory \\ \hline Cost of goods sold & \\ \hline \end{tabular} \begin{tabular}{ll|} \hline & \multicolumn{1}{l|}{ AVERAGE-COST } \\ \hline Goods available for sale & \\ \hline Units available for sale & \\ \hline Average cost per unit & \\ \hline \end{tabular} b. 1. Ending Inventory \begin{tabular}{|l|l|l|} \hline Units & Unit Cost & Total Cost \\ \hline \hline & & \\ \hline \hline \end{tabular} When you have completed this problems, respond to the additional question on the P6.2 Add Ques worksheet
