ting Principles, 12e nent Problem 6-2A Glee Distribution markets CDs of the perf

Question

ting Principles, 12e nent Problem 6-2A Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Gkee had in beginning invantary Oct. 3 6,100 8 Oct. 19 7,320 $10 Oct. 9 8.540 $9 Oct. 25 9,760 $11 4,10 of Unique's CDs with nt cont of $7. During Otebe, Gie nade theng Determine the cost of goods available for sale. Cost of goods available for sale LINK TO cost per unit (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flew mathods (O, LIFO. and FIFO Division of

Explanation / Answer

Units Unit cost Total Beg. Inv. 4880 7 34160 Oct-03 6100 8 48800 Oct-09 8540 9 76860 Oct-19 7320 10 73200 Oct-25 9760 11 107360 Total 36600 340380 Cost of goods available for sale = 340380 Cost per unit = 340380/36600= 9.3 Ending inventory units = 36600-26596= 10004 FIFO LIFO Average cost Ending inventory 109800 =(9760*11)+(244*10) 75152 =(4880*7)+(5124*8) 93037 =10004*9.3 Cost of goods sold 230580 =340380-109800 265228 =340380-75152 247343 =340380-93037 FIFO results in highest inventory amount $109800 LIFO results in highest cost of goods sold amount $265228

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