Question

Problem 6-02A a, b1-b2, с (Video) Crane Distribution markets CDs of the performing artist Unique. At the beginning of October, Crane had in beginning inventory 2,000 of Unique's CDs with a unit cost of $5. During October, Crane made the following purchases of Unique's CDs. Oct. 3 2,500 @ $6 Oct. 9 3,500 @ $7 Oct. 19 3,000 @ $8 Oct. 25 4,000 @ $9 During October, 10,900 units were sold. Crane uses a periodic inventory system. Determine the cost of goods available for sale. Cost of goods available for sale LINK TO TEXT Calculate cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Cost per unit $ LINK TO TEXT 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 o decimal places, e.g. 1,250.) FIFO LIFO AVERAGE-COST The ending inventory $ ta $ The cost of goods sold ta $ LINK TO TEXT 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? (1) produces the highest inventory amount, $ (2) produces the highest cost of goods sold, $ Click if you would like to show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR PROBLEM

Answer 1

ANS units unit cost Total cost Beginning inventory 2006 $5. 6 10.000 15000 2500- $ 6. Oct 3 oct 9 24500 3500 $7 oct 19 3000. $8. 24000 oct 25. 4000 $9 36000 Total 15000 109500-

Ending inventory units 15000-10900 - 400 cost of goods available for sale cost of goods available for Sale $109500 cost per unit ) cost per unit - 109500 15000 $7.3 FIFO Ending inventory - 14000 X $9) + (4100-4000) * $8. = 36 800 (2) cost of goods sold 109500-36800 = 72700 LIFO 1 Ending inventory = 2.000 y5) 4(4100-2000) X$6 = 22600 122 cost of goods sold = 109500 - 22600 + 86900

Average cost Ending inventory - 4100 X $ 7.3 = 29930 cost of goods sold = 109500-29930. = 79570 FIFO LIFO Average The Ending inventowy) 36800 22600 | 29930 The cost of 72700. 86900 79570 goods sold MIFIFO produces the Agest inventory amount $ 36800 (2) HFO produces the higest cost of goods Sold $ 86900