Question

Problem 6-02A a, b1-b2, с (Video) Coronado Distribution markets CDs of the performing artist Unique. At the beginning of October, Coronado had in beginning inventory 2,000 of Unique's CDs with a unit cost of $5. During October, Coronado made the following purchases of Unique's CDs. Oct. 3 2,500 @ $6 Oct. 9 3,500 @ $7 Oct. 19 Oct. 25 3,000 @ $8 4,000 @ $9 During October, 10,700 units were sold. Coronado uses a periodic inventory system. Determine the cost of goods available for sale. Cost of goods available for sale 109500 LINK TO TEXT Calculate cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Cost per unit 7.30 $ LINK TO TEXT

Answer 1

	Units	Unit cost	Total cost
Beg. Inventory	2000	5	10000
Oct 3	2500	6	15000
Oct 9	3500	7	24500
Oct 19	3000	8	24000
Oct 25	4000	9	36000
Total	15000		109500
Ending inventory units	4300	=15000-10700
a
Cost of goods available for sale	109500
b
Cost per unit	7.30	=109500/15000
c
FIFO:
The ending inventory	38400	=(4000*9)+(4300-4000)*8
The cost of goods sold	71100	=109500-38400
LIFO:
The ending inventory	23800	=(2000*5)+(4300-2000)*6
The cost of goods sold	85700	=109500-23800
Average cost:
The ending inventory	31390	=4300*7.30
The cost of goods sold	78110	=109500-31390
d
FIFO produces the highest inventory amount $38400
LIFO produces the highest cost of goods sold $85700