Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PSA5.9 Determine cost of sales and ending inventory using FIFO, LIFO and average cost with analysis. 05,6 Movieworld Ltd sells old movies on DVD. At
PSA5.9 Determine cost of sales and ending inventory using FIFO, LIFO and average cost with analysis. 05,6 Movieworld Ltd sells old movies on DVD. At the beginning of October, Movieworld had in beginriing inventory 1100 DVDs with a unit cost of $10. During October, Movieworld made the following purchases of DVDs: 3850 @ $12 4400 @ $14 3300 @ $16 2200 @ $18 Oct. 3 Oct. 19 Oct. 9 Oct. 25 ingotober 12 100unny system. Required a. Determine the cost of goods available for sale. b. Determine (1) the ending inventory and (2) the cost of sales under each of the assumed cost flow methods (FIFO, LIFO and average cost). Prove the accuracy of the cost of sales under the FIFO and LIFO methods. c. Which cost flow method results in (1) the highest inventory amount for the statement of financial position and (2) the highest cost of sales for the statement of profit or loss
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