Jackson Enterprises markets the CDs for the performing artist Adam Lavine. At th

Question

Jackson Enterprises markets the 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 the following templates. Label each answer with the letter in parenthesis. Prove the accuracy of the cost of goods sold under FIFO. Proof of Cost of Goods Sold

Explanation / Answer

Ans-

Perpetual inventory system FIFO Detail Date Qty. unit cost Amt Sold Units Cost of goods sold Beginning Inventory 1-Mar     1,500                7     10,500           1,500                       10,500 Purchases 5-Mar     3,000                8     24,000           3,000                       24,000 Purchases 13-Mar     5,500                9     49,500           5,500                       49,500 Purchases 21-Mar     4,000             10     40,000           2,500                       25,000 Purchases 26-Mar     2,000             11     22,000 Total 16,000 146,000        12,500                     109,000

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