Question

Problem 6-2A (Part Level Submission)

Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,613 CDs with a unit cost of $10. During March, Dunbar made the following purchases of CDs.

March 5 2,890 @ $12

March 13 5,058 @ $13

March 21 7,225 @ $14

March 26 2,890 @ $16

During March 17,340 units were sold. Dunbar uses a periodic inventory system.

Costs of goods available for sale $283, 954

Average cost $ 13.099

QUESTION:

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.)

The ending inventory FIFO LIFO AVERAGE-COST

$? $? $?

The cost of goods sold FIFO LIFO AVERAGE-COST

$? $? $?

Answer 1

Solution

	FIFO	LIFO	Weighted Average
Ending Inventory	$     66,484	$           44,806	$           56,802
Cost of Goods Sold	$ 2,17,470	$       2,39,148	$       2,27,152

Using Average cost given already in question Ending inventory will be $56797 and cost of goods sold will be $ 227,157..........Please use this answer if the above answer for weighted average do not match.

Working

	Units	Cost per unit	value
Beginning Balance	3613	$             10.00	$     36,130.00
Purchases
05-Mar	2890	$             12.00	$     34,680.00
13-Mar	5058	$             13.00	$     65,754.00
21-Mar	7225	$             14.00	$ 1,01,150.00
26-Mar	2890	$             16.00	$     46,240.00
	21676		$ 2,83,954.00

Average Cost of Inventory
Units	(A)	21676
Total Cost	(B)	$ 2,83,954.00
Average Cost	(C=B/A)	$           13.100

FIFO
Total Units Avalable for sale		21676
Units Sold		17340
Closing Stock in Units		4336
Valuation
Ending Inventory	2890	@	$             16.00	$            46,240
	1446	@	$             14.00	$            20,244
Value Of Ending Inventory				$            66,484
Cost of Goods sold				$        2,17,470

LIFO
Total Units Avalable for sale		21676
Units Sold		17340
Closing Stock in Units		4336
Valuation
Ending Inventory	3613	@	$             10.00	$      36,130.00
	723	@	$             12.00	$        8,676.00
Value Of Ending Inventory				$      44,806.00
Cost of Goods sold				$ 2,39,148.00

Weighted Average method
Total Units Avalable for sale		21676
Units Sold		17340
Closing Stock in Units		4336
Valuation
Ending Inventory	4336	@	$           13.100	$            56,802
Value Of Ending Inventory				$            56,802
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$        2,27,152