Question

Problem 6-02A a, b1-b2, с (Video) Express Distribution markets CDs of the performing artist Fishe. At the beginning of October, Express had in beginning inventory 2,000 of Fishe's CDs with a unit cost of $7. During October, Express made the following purchases of Fishe's CDs. Oct. 3 2,500 @ $8 Oct. 9 3,500 @ $9 Oct. 19 3,000 @ $10 Oct. 25 4,000 @ $11 During October, 10,900 units were sold. Express uses a periodic inventory system. Determine the cost of goods available for sale. Cost of goods available for sales LINK TO TEXT VIDEO: SIMILAR PROBLEM Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Weighted average cost per unit

Answer 1

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Cost of goods sold available for sale			1,39,500
Cost per unit			$         9.30
	FIFO	LIFO	Weighted - average
Ending Inventory	$     45,000	$     30,800	$     38,130
Cost of goods sold	$     94,500	$ 1,08,700	$ 1,01,370
FIFO produces highest inventory amount $45000
LIFO produces highest Cost of goods sold, $108700
Workings:
FIFO	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Oct-01	2,000	$               7	$     14,000	2,000	$             7	$ 14,000	-	$             7	$           -
Oct-03	2,500	$               8	$     20,000	2,500	$             8	$ 20,000	-	$             8	$           -
Oct-09	3,500	$               9	$     31,500	3,500	$             9	$ 31,500	-	$             9	$           -
Oct-19	3,000	$             10	$     30,000	2,900	$          10	$ 29,000	100	$          10	$    1,000
Oct-25	4,000	$             11	$     44,000	0	$          11	$           -	4,000	$          11	$ 44,000
	15,000		1,39,500	10,900		94,500	4,100		45,000
LIFO	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Oct-01	2,000	$               7	$     14,000	-	$             7	$           -	2,000	$             7	$ 14,000
Oct-03	2,500	$               8	$     20,000	400	$             8	$    3,200	2,100	$             8	$ 16,800
Oct-09	3,500	$               9	$     31,500	3,500	$             9	$ 31,500	-	$             9	$           -
Oct-19	3,000	$             10	$     30,000	3,000	$          10	$ 30,000	-	$          10	$           -
Oct-25	4,000	$             11	$     44,000	4,000	$          11	$ 44,000	-	$          11	$           -
	15,000		1,39,500	10,900		1,08,700	4,100		30,800
Weighted - average	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Oct-01	2,000	$               7	$     14,000
Oct-03	2,500	$               8	$     20,000
Oct-09	3,500	$               9	$     31,500
Oct-19	3,000	$             10	$     30,000
Oct-25	4,000	$             11	$     44,000
	15,000		1,39,500	10,900	$       9.30	1,01,370	4,100	$       9.30	38,130
*Average Cost	=	Cost of goods available for sale / No. Of units
	=	$159030 / 17100 units
	=	$                                                                                                                                                                 9.30