Question

Problem: Doom's Day Distribution markets CDs of the performing artist Marilynn. At the beginning of October, Doom's Day had in beginning inventory Doom's Day made the following purchases of Marilynn's CDs. 2,000 of Marilynn's CDs with a unit cost of $7.00 During October units at units at units at units at 3-Oct 3,000 $8.00 9-Oct 5,500 9.00 4,000 18-Oct 25-Oct 10.00 2,000 11.00 During October 13,500 units were sold. Doom's Day uses a periodic inventory system. Instructions: (a) Determine the cost of g0ods available for sale. Quantity Reference Date: Unit Cost: Extended Cost: units at units at units at Date Reference Formula Reference Reference Reference Reference Reference Reference Formula Formula Reference Reference Reference Quantity: Reference Formula units at Reference Formula units at Reference Formula Formula Cost of goods available: (b)(1) Determine the ending inventory and cost of goods sold under the First-in, First-out cost flow method. Prove the accuracy of the co- of goods sold. Cost of Goods Sold Cost of goods available for sale Ending Inventory Date Unit Cost Total Cost Reference Units

please answer part B3

Answer 1

Unit cost Extended cost 7.00 $ 8.00 $ Date Quantity $ units at Oct-01 2000 14,000 $ units at Oct-03 3000 24,000 9.00 $ 10.00 $ 11.00 $ $ Oct-09 units at 49,500 5500 $ 4000 units at Oct-18 40,000 $ units at 22,000 Oct-25 2000 Cost of goods available Quantity 16500 1,49,500 Requirement B(3) Total units purchases cost $ 1,49,500 Title 16500 (149500/16500) $ Average unit cost 9.06 Ending Inventory quantity (16500-13500) 3000 Ending Inventory Value (3000*$9.06) Cost of Goods sold (13500*$9.06) Cost of Goods available for sale (27180+122310) $ 1,49,500 $ 27,182 $ 1,22,318