Question

Problem 6-2A (Part Level Submission) Sheffield Distribution markets CDs of the performing artist Fishe. At the beginning of October, Sheffield had in beginning inventory 3,800 of Fishe's CDs with a unit cost of $7. During October, Sheffield made the following purchases of Fishe's CDs. Oct. 3 4,750 @ $8 Oct. 9 6,650 @ $9 Oct. 195,700 @ $10 Oct. 25 7,600 @ $11 During October, 20,710 units were sold. Sheffield uses a periodic inventory system. (a) Your answer is correct. Determine the cost of goods available for sale. Cost of goods available for sale 265050

what is the FIFO LIFO and Average Cost in part b2?

Answer 1

Solution

	FIFO	LIFO	Weighted Average
Ending Inventory	$               85,500	$                 58,520	$           72,447
Cost of Goods Sold	$             179,550	$              206,530	$        192,603

Working

	Units	Cost per unit	value
Beginning Balance	3800	$                     7.00	$ 26,600
Purchases
	4750	$                     8.00	$ 38,000
	6650	$                     9.00	$ 59,850
	5700	$                   10.00	$ 57,000
	7600	$                   11.00	$ 83,600
Total	28500		$ 265,050

.

Average Cost of Inventory
Units	(A)	28500
Total Cost	(B)	$ 265,050
Average Cost	(C=B/A)	$                     9.30

0

FIFO
Total Units Available for sale		28500
Units Sold		20710
Closing Stock in Units		7790
Valuation
Ending Inventory	7600	@	$             11.00	$ 83,600
	190	@	$             10.00	$ 1,900
Value Of Ending Inventory				$ 85,500
Cost of Goods sold				$ 179550.
LIFO
Total Units Available for sale		28500
Units Sold		20710
Closing Stock in Units		7790
Valuation
Ending Inventory	3800	@	$               7.00	$ 26,600
	3990	@	$               8.00	$ 31,920
Value Of Ending Inventory				$            58,520
Cost of Goods sold	265050 minus 58520			$         206,530
Weighted Average method
Total Units Available for sale		28500
Units Sold		20710
Closing Stock in Units		7790
Valuation
Ending Inventory	7790	@	$               9.30	$            72,447
Value Of Ending Inventory				$            72,447
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$         192,603