Question

Bridgeport Distribution markets CDs of the performing artist Fishe./ At the beginning/ of October, Bridgeport /had in beginning inventory 2,400 of Fish/e’s CDs with a u/nit cost of $6. During Oct/o/ber, Bridgeport mad/e the foll/owing purchases of Fishe’s CDs.

Bridgeport Distribution markets CDs of the performing artist Fishe. At the beginning of October, Bridgeport had in beginning inventory 2,400 of Fishe's CDs with a unit cost of $6. During October, Bridgeport made the following purchases of Fishe's CDs. Oct. 3 3,000 @ $7 Oct. 94,200 @ $8 Oct. 19 3,600 @ $9 Oct. 254,800 $10 During October, 13,080 units were sold. Bridgeport uses a periodic inventory system.

Cost of goods available for sale

$ 149400

Weighted average cost per unit

$ 8.3

Determin/e (1) the ending inventory and (2) the cost of goo./ds sold under ea/ch of the/ /assumed cost flow /methods (FIFO, LIFO, and average-cost). Prove the accuracy of/ the co/st of goods/ sold/ under t/he FIF/O and LIFO/ me/thods.

Answer 1

8idgerepO3t Distaibution markts cD CPeriodic nventory) cOSt Of 9ods available for sale F149400 weighled Aveacige Cost Pes unit 8.3 Reg Aveaage co st FIFO LIFO The endin9 Inventoy FThe costoF 900d so1d 40030 $ 32040 s49080 PI08569 1,17 360 F100320 EXPlanation: CA) CB) unit TOTOL COst (AXB Pes unit Beginning Ihventoy2400 f14,400 6 Oct 3 3000 21,000 4200 33600 3600 Oct 19 32,400 4800 48000 Oct 25 F 1O 149400 J01 COST O goods avail for sale 18000 68.3 F149400 18000 (2) weightea AVg cost PU= FIFO: AVau аbie sold 18000 Unit - 13080 UniF Endíng znventoy unit 4920 Unit

Enaing nventoay Oct 25 4800 Unit F 48000 1080 Oct 19 120 49080 4920 unit COst Of good sold 149400 49090 100320 Beginning inv P14400 Ending Inventory R400 X $6 17640 oct 3 2520 Xs7 4920 0nit 32040 S149400- 32040 L4 360 COstOf GOOd so1d AVg CO0ST 4920 Unit X f8.3 p40836 Ending Inventoy F 108564 S149400 -40836 COST Of GIOo s019