Question

Bramble Corp. markets CDs of numerous performing artists. At the beginning of March, Bramble had in beginning inventory 2,700 CDs with a unit cost of $6. During March, Bramble made the following purchases of CDs.

March 5		2,000		@		$7		March 21		4,600		@		$9
March 13		3,700		@		$8		March 26		2,000		@		$10

During March 11,900 units were sold. Bramble uses a periodic inventory system.

(a)

• Your Answer
• Correct Answer

Partially correct answer iconYour answer is partially correct.

Determine the cost of goods available for sale.

The cost of goods available for sale

$enter the cost of goods available for sale in dollars

Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

Average Cost

$enter an average cost in dollars

eTextbook and Media

Solution

List of Accounts

  

Attempts: 6 of 6 used

(b)

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
The ending inventory		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
The cost of goods sold		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Answer 1

Cost of goods sold available for sale			1,21,200
Cost per unit			$         8.08
	FIFO	LIFO	Average cost
Ending Inventory	$     29,900	$     19,000	$     25,048
Cost of goods sold	$     91,300	$ 1,02,200	$     96,152
Workings:
FIFO	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Mar-01	2,700	$               6	$     16,200	2,700	$             6	$ 16,200	-	$             6	$           -
Mar-05	2,000	$               7	$     14,000	2,000	$             7	$ 14,000	-	$             7	$           -
Mar-13	3,700	$               8	$     29,600	3,700	$             8	$ 29,600	-	$             8	$           -
Mar-21	4,600	$               9	$     41,400	3,500	$             9	$ 31,500	1,100	$             9	$    9,900
Mar-26	2,000	$             10	$     20,000	0	$          10	$           -	2,000	$          10	$ 20,000
	15,000		1,21,200	11,900		91,300	3,100		29,900
LIFO	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Mar-01	2,700	$               6	$     16,200	-	$             6	$           -	2,700	$             6	$ 16,200
Mar-05	2,000	$               7	$     14,000	1,600	$             7	$ 11,200	400	$             7	$    2,800
Mar-13	3,700	$               8	$     29,600	3,700	$             8	$ 29,600	-	$             8	$           -
Mar-21	4,600	$               9	$     41,400	4,600	$             9	$ 41,400	-	$             9	$           -
Mar-26	2,000	$             10	$     20,000	2,000	$          10	$ 20,000	-	$          10	$           -
	15,000		1,21,200	11,900		1,02,200	3,100		19,000
Average cost	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Mar-01	2,700	$               6	$     16,200
Mar-05	2,000	$               7	$     14,000
Mar-13	3,700	$               8	$     29,600
Mar-21	4,600	$               9	$     41,400
Mar-26	2,000	$             10	$     20,000
	15,000		1,21,200	11,900	$       8.08	96,152	3,100	$       8.08	25,048
*Average Cost	=	Cost of goods available for sale / No. Of units
	=	$121200 / 15000 units
	=	$                                                                                                                                                                 8.08