Question

Problem 6-2A (Part Level Submission) Sheffield Distribution markets CDs of the performing artist Fishe. At the beginning of October, Sheffield had in beginning inventory 3,800 of Fishe’s CDs with a unit cost of $7. During October, Sheffield made the following purchases of Fishe’s CDs. Oct. 3 4,750 @ $8 Oct. 19 5,700 @ $10 Oct. 9 6,650 @ $9 Oct. 25 7,600 @ $11 During October, 20,710 units were sold. Sheffield uses a periodic inventory system.

(a) Your answer is correct. Determine the cost of goods available for sale. Cost of goods available for sale 265050 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 1 of 3 used

(b1) Your answer is correct. Calculate weighted-average cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Weighted-average cost per unit 9.3 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 1 of 3 used

(b2) Your answer is incorrect. Try again. 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). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.) FIFO LIFO AVERAGE-COST The ending inventory $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places The cost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places

Answer 1

				Average
		FIFO	LIFO	Cost
Ending Inventory		$    85,500.00	$    58,520.00	$    72,447.00
Cost of Goods sold		$ 1,79,550.00	$ 2,06,530.00	$ 1,92,603.00

Workings:

Particulars			Units	Rate	Amount
Beginning Inventory			3800	$      7.00	$    26,600.00
Purchases:
Oct-03			4750	$      8.00	$    38,000.00
Oct-09			6650	$      9.00	$    59,850.00
Oct-19			5700	$    10.00	$    57,000.00
Oct-25			7600	$    11.00	$    83,600.00
Cost of Goods Available for sale			28500	$      9.30	$ 2,65,050.00
Units Sold			20710
Ending Inventory			7790

FIFO
Ending Inventory:			Units	Rate	Amount
Units from:		Oct-25	7600	$   11.00	$    83,600.00
		Oct-19	190	$   10.00	$      1,900.00
			7790		$    85,500.00
Cost of Goods sold		($ 265050 - $ 85500)			$ 1,79,550.00
LIFO
Ending Inventory:			Units	Rate	Amount
Units from:		Beg. Inv.	3800	$      7.00	$    26,600.00
		Oct-03	3990	$      8.00	$    31,920.00
			7790		$    58,520.00
Cost of Goods sold		($ 265050 - $ 58520)			$ 2,06,530.00
Average Cost
			Units	Rate	Amount
Ending Inventory			7790	$      9.30	$    72,447.00
Cost of Goods sold			20710	$      9.30	$ 1,92,603.00
			28500		$ 2,65,050.00