Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Riverbed Distribution markets CDs of numerous performing artists. At the beginning of March, Riverbed had in beginning inventory 3,600 CDs with a unit cost of

image text in transcribed
image text in transcribed
Riverbed Distribution markets CDs of numerous performing artists. At the beginning of March, Riverbed had in beginning inventory 3,600 CDs with a unit cost of $7. During March, Riverbed made the following purchases of CDs. March 5 4,500 @ $8 March 21 7,400 @ $10 March 13 6,300 @ $9 March 26 5,200 @ $11 During March 20,000 units were sold. Riverbed uses a periodic inventory system 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. (Round answers to o decimal places, e.g. 1,250. Use weighted average unit cost rounded to 3 decimal places for computations.) FIFO LIFO AVERAGE-COST The ending inventory $ The cost of goods sold

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions