Jackson Enterprises markets tho CDs for the performing artist Adam Lavine, At th
ID: 2471109 • Letter: J
Question
Jackson Enterprises markets tho CDs for the performing artist Adam Lavine, At the beginning of March, Jackson had beginning inventory of 1,500 lavine CDs with a unit cost of $7. During March, Jackson made the following purchases of Lavine CDs. During March, 12,500 units were sold. Jackson uses a perpetual inventory system. Prepare answers on an Excel spreadsheet using tho following templates. Label each answer with the letter in parenthesis. Determine the ending inventory under FIFO. (c) Determine the COGS under FIFO.Explanation / Answer
Answer:
b. Calculation of Ending Inventory under FIFO
Begining Inventory = 1,500 units at $ 7 per units; Total = $ 10,500
Add: Purchases = 3,000 units at $ 8 per unit; Total = $ 24,000
Add: Purchases = 5,500 units at $ 9 per unit; Total = $ 49,500
Add: Purchases = 4,000 units at $ 10 per unit; Total = $ 40,000
Add: Purchases = 2,000 units at $ 11 per unit; Total = $ 22,000
Less: Sales = 12,500 units
Ending Inventory = 3,500 units; 1,500 units at $ 10 and 2,000 units at $ 11; Total = $ 37,000
Calculation of Cost of Goods Sold;
Units sold = 12,500 units
1,500 units at $ 7 per unit; Total = $ 10,500
Add: 3,000 units at $ 8 per unit; Total = $ 24,000
Add: 5,500 units at $ 9 per unit; Total = $ 49,500
Add: 2,500 units at $ 10 per unit; Total = $ 25,000
Total Cost of Goods Sold = $ 109,000
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