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Flint Corporation markets CDs of numerous performing artists. At the beginning o

ID: 2569040 • Letter: F

Question

Flint Corporation markets CDs of numerous performing artists. At the beginning of March, Flint Corporation had in beginning inventory 2,460 CDs with a unit cost of $7. During March, Flint Corporation made the following purchases of CDs.


During March 11,810 units were sold. Flint Corporation 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). (Round answers to 0 decimal places, e.g. 125.)

FIFO

LIFO

AVERAGE-COST

March 5 1,890 @ $8 March 21 4,940 @ $10 March 13 3,310 @ $9 March 26 2,050 @ $11

Explanation / Answer

FIFO LIFO Beginning Inventory (2460 units@$7) 17220 17220 Purchase (1890 units@$8) 15120 15120 Purchase (3310 units@$9) 29790 29790 Purchase (4940 units@$10) 49400 49400 Purchase (2050 units@$11) 22550 22550           Goods available for sale 134080 134080           Cost of goods sold(2460*7+1890*8+3310*9+4150*10) 103630           Cost of goods sold(2050*11+4940*10+3310*9+1510*8) 113820 Ending Inventory (790*10+2050*11) 30450 Ending Inventory ( 380*8+2460*7) 20260