P6-2A Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis.

Express Distribution markets CDs of the performing artist Fishe. At the beginning of October, Express had in beginning inventory 2,000 of Fishe's CDs with a unit cost of $7. During October, Express made the following purchases of Fishe's CDs.

Oct. 3 2,500 @ $8 Oct. 19 3,000 @ $10

Oct. 9 3,500 @$9 Oct. 25 4,000 @ $11

During October, 10,900 units were sold. Express uses a periodic inventory system.

Instructions:

(a) Determine the cost of goods available for 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.

(c) 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?

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".

PS. Please answer all the missing values and "?" in the table. Thank you, Professors!

(6) (1) LIFO 26 2A Determine cost of cos soldatencing investorsing F.FO UFO ang Gerage cost with analys's Express Distribution markets CDs of the performing artist Fishe. At the beginning of October, Express had in beginning Inventory 2,000 of Fishe's cos with a unit cost of $7. During October, Express made the following purchases of Fishe's CDs Oct. 3 2,500 58 Oct. 19 3,000 $10 Oct. 93,500 @$ 9 Oct. 25 4,000 @ $11 Date Total Cost Date Ending Inventory Units Unit Cost Value Value Value Value ? Date 2 ? ? During October, 10,900 units were sold. Express uses a periodic inventory system . (b) (2) Instructions (al Determine the cost of goods available for sale (b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the ( assumed cost flow methods (FIFO, UFO and average cos de Prove the accuracy of the cost of goods sold under the FIFO and UFO methods. (c) 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? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". a a ? Cost of Goods Sold Cost of goods available for sale Less: Ending Inventory Cost of goods sold Value Value ? (a) Total Cost Total Cost ? Date Oct 1 7 7 2 Date Date Date Date Date Proof of Cost of Goods Sold Units Unit Cost Value Value Value Value Value Value Value COST OF GOODS AVAILABLE FOR SALE Explanation Unit Cost Beginning inventory Value Value Purchase Value Value Purchase Value Value Purchase Value Value Purchase Value Value Total 7 ? 3 ? 9 7 2 ? 19 ? Value 25 ? ? 7 ? (b) (1) FIFO (b) (1) Date Total Cost Ending Inventory Units Unit Cost Value Value Value Date Date ? ? AVERAGE COST Total cost Total units available Average cost *Round to two decimal points Value Value Value 7 7 ? ? (b) (2) Ending Inventory Cost of Goods Sold Cost of goods available for sale Less: Ending Inventory : Cost of goods sold Value Value Units Value Unit Cost Value Total Cost Value ? Proof of Cost of Goods Sold Units Unit Cost Date Date Date Value Value Value Value Value Value Value Value Value Value Cost of Goods Sold Cost of goods available for sale Less: Ending inventory Cost of goods sold Total Cost ? ? 2 2 ? ? Date ? Date