Question

Problem 6-02A a, b1-b2, c (Video) Lily Distribution markets CDs of the performing artist Unique. At the beginning of October, Lily had in beginning inventory 2,000 of Unique’s CDs with a unit cost of $7. During October, Lily made the following purchases of Unique’s CDs. Oct. 3 2,500 @ $8 Oct. 19 3,000 @ $10 Oct. 9 3,500 @ $9 Oct. 25 4,000 @ $11 During October, 10,750 units were sold. Lily uses a periodic inventory system.

Your answer is correct. Determine the cost of goods available for sale. Cost of goods available for sale $ SHOW SOLUTION SHOW ANSWER LINK TO TEXT

Your answer is correct. Calculate cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Cost per unit $ SHOW SOLUTION SHOW ANSWER LINK TO TEXT

Your answer is incorrect. Try again. 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. 1,250.) FIFO LIFO AVERAGE-COST The ending inventory $ $ $ The cost of goods sold $ $ $ LINK TO TEXT

Your answer is partially correct. Try again. Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement? (1) FIFOLIFOAverage-cost produces the highest inventory amount, $ . (2) FIFOLIFOAverage-cost produces the highest cost of goods sold, $ .

Answer 1

Sold 0 0 101 Periodic : FIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of cost of Goods # of Units Cost Per Goods Cost Per Ending # of Units Cost Per Unit Available for sales sold Unit # of Units Unit Inventory Beginning inventory 2000 14000 2000 7 14000 Purchases Oct-03 20000 2500 8 20000 Oct-09 3500 315001 3500 9 31500| 0 Oct-19 3000 30000 27500 10 27500 250 10 2500 Oct-25 4000 44000 0 11] 4000 11 44000 Totals 15000 139500 10750 930001 42501 46500 Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of cost of Goods # of Units Cost Per Goods Cost Per Ending # of Units Cost Per Unit Available for sales sold Unit Sold # of Units Unit Inventory Beginning inventory 2000 14000 2000 14000 Purchases Oct-031 2500 8 20000 250 8 2000|| 2250 18000 Oct-09 3500 91 31500 35001 9 31500 0 1 91 Oct-19 3000 10 30000 3000 1030000 0 Oct-25 4000 11 44000 4000 11 44000 ol 0 Totals 150000 139500 10750 107500 4250 32000 101

Periodic : Weighted Average Goods Purchasd Cost Per cost of Goods Available for Unit sales 14000 Cost of Goods Sold # of Cost of Cost Per Units Goods Unit sold Sold Inventory Balance Cost Per Ending # of Units Unit Inventory # of Units 2000 Beginning inventory Purchases Oct-03 Oct-09 Oct-19 Oct-25 Totals 2500 3500 3000 4000 15000 20000 31500 30000 44000 139500 9.30 10750 9 .30 99975 4250 9.30 39525 Answers The cost of Goods Available for sale 139500 Average Cost per unit =(139500/15000) 9.30 FIFO LIFO Weighted Average Ending inventoy 46500 32000 39525 Cost of Goods Sold 93000 107500 99975 FIFO LIFO Result in Highest inventory amount Result in Highest Cost of goods sold Amount 46500 107500