Dunbar Distribution markets CDs of numerous performing artists. At the beginning

Question

Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,065 CDs with a unit cost of $9. During March, Dunbar made the following purchases of CDs. March 5 2,452 $10 March 21 6,130$12 March 13 4,291$11 March 26 2,452$13 During March 14,712 units were sold. Dunbar uses a periodic inventory system (a) Determine the cost of goods available for sale. The cost of goods available for sales (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g.5.125.) Average Cost SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR PROBLEM 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). (Round answerS to o decimal places, e.g. 125) the cost of eds seld under easch of the assumed cost how methods (FIrO, FIFO LIFO AVERAGE-COS The ending inventory The cost of goods sold

Explanation / Answer

Solution:

(A). Caluculation of Ending Inventory:

  

Begining Inventory 3065 * 9 27,585

Add: Purchase 2,452 * 10 24,520

Purchase 4,291 * 11 47,201

   Purchase 6,130 * 12 73,560

Purchase 2,452 * 13 31,876

Less: Sales 14,712 * 11.5 1,69,188

   Ending Inventory 3,678 * 9.7 = 35,554

(B). Cost of Goods Sold:

  

Begining Inventory 3065 * 9 27,585

Add: Purchase 2,452 * 10 24,520

Purchase 4,291 * 11 47,201

   Purchase 6,130 * 12 73,560

Purchase 2,452 * 13 31,876

Less: Ending Invenroty 3,678 * 9.7 35,554

   Ending Inventory 14,712 * 11.5 = 1,69,188

(C). Average Cost Caluculation:

   March - 5 10

   March -13 11

March - 21 12

   March - 26 13

   Total Cost = 46   

Average Cost Caluculation:

   Average Cost = 46 / 4

   = 11.5

Average Cost = Total Cost / No.of Times

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.