Question

Current Attempt in Progress Coronado Industries markets CDs of numerous performing artists. At the beginning of March, Coronado had in beginning inventory 2.800 CDs with a unit cost of $8. During March, Coronado made the following purchases of CDs. March 5 March 13 2,200 @ 3,400 @ $9 $10 March 21 5,400 March 26 2,200 @ $11 $12 During March 11,600 units were sold. Coronado uses a periodic inventory system. Determine the cost of goods available for sale. The cost of goods available for sale $ Calculate Average Cost. (Round answer to 3 decimal places, eg. 5.125.) Average Cost $ e Textbook and Media List of Accounts 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 The cost of goods sold $ $ $ $ e Textbook and Media List of Accounts 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? produces the highest inventory amount. produces the highest cost of goods sold. e Te Average-cost FIFO LIFO

Answer 1

Cost of goods available for sale = $162,000

Average cost = $10.125

	FIFO	LIFO	Weighted Average
Ending Inventory	$                 50,600	$           36,800	$            44,550
Cost of Goods Sold	$              111,400	$        125,200	$         117,450

FIFO Gives highest Invetory

LIFO Gives highest Cost of goods sold

.

Working

	Units	Cost per unit	value
Beginning Balance	2800	$                     8.00	$ 22,400
Purchases
	2200	$                     9.00	$ 19,800
	3400	$                   10.00	$ 34,000
	5400	$                   11.00	$ 59,400
	2200	$                   12.00	$ 26,400
Total	16000		$ 162,000

.

Average Cost of Inventory
Units	(A)	16000
Total Cost	(B)	$ 162,000
Average Cost	(C=B/A)	$                 10.125

.

FIFO
Total Units Available for sale		16000
Units Sold		11600
Closing Stock in Units		4400
Valuation
Ending Inventory	2200	@	$             12.00	$ 26,400
	2200	@	$             11.00	$ 24,200
Value Of Ending Inventory				$            50,600
Cost of Goods sold				$         111,400
LIFO
Total Units Available for sale		16000
Units Sold		11600
Closing Stock in Units		4400
Valuation
Ending Inventory	2800	@	$               8.00	$ 22,400
	1600	@	$               9.00	$ 14,400
Value Of Ending Inventory				$            36,800
Cost of Goods sold				$         125,200
Weighted Average method
Total Units Available for sale		16000
Units Sold		11600
Closing Stock in Units		4400
Valuation
Ending Inventory	4400	@	$           10.125	$            44,550
Value Of Ending Inventory				$            44,550
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$         117,450