Concord Distribution markets CDs of numerous performing artists. At the beginning of March, Concord had inbeginning inventory 4,500 CDs with a unit cost of $6. During March, Concord made the following purchases of CDs.March 55,625$7March 218,750$9March 137,875$8March 267,000 @ $10During March 25,000 units were sold. Concord uses a periodic inventory system. 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 3 decimalplaces for computations.)FIFOLIFOAVERAGE-COSTThe ending72109inventoryThe cost of$$206016goods sold%24%24%24%24%24

Here in this question, we are required to determine ending inventory and COGS under FIFO,LIFO and…

Answered: Concord Distribution markets CDs of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...

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Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Carla Company uses the perpetual inventory system. The following information is available for January of the current year when Carla sold 1,600 units of inventory on January 14. Using the FIFO method, calculate Carlas cost of goods sold for January and its January 31 inventory.
Concord Distribution markets CDs of numerous performing artists. At the beginning of March, Concord had in beginning inventory 2,390 CDs with a unit cost of $7. During March, Concord made the following purchases of CDs. March 5 2,030 @ $8 March 21 5,060 @ $10 March 13 3,260 @ $9 March 26 1,800 @ $11 During March 11,470 units were sold. Concord uses a periodic inventory system. Determine the cost of goods available for sale. The cost of goods available for sale $4 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). (For calculation purposes, round average cost to 3 decimal places, e.g. 5.275. Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory %24 $4 24 The cost of goods sold $4 2$ 24 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…
Novak Distribution markets CDs of numerous performing artists. At the beginning of March, Novak had in beginning inventory 2,580 CDs with a unit cost of $7. During March, Novak made the following purchases of CDs. March 5 March 13 1,910 (a) 3,230 $8 $9 March 21 March 26 During March, 11,530 units were sold. Novak uses a periodic inventory system. Determine the cost of goods available for sale. $10 2,040 @ $11 Cost of goods available for sale $ 5,070
Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory 3,900 CDs with a unit cost of $7. During March, Swifty made the following purchases of CDs. March 5 March 13 4,875 (a) 6,825 $8 $9 March 21 X Your answer is incorrect. March 26 During March 21,000 units were sold. Swifty uses a periodic inventory system. Determine the cost of goods available for sale. 7,850 @ $10 $11 Cost of goods available for sale $ 5,800 181725
Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory 3,900 CDs with a unit cost of $7. During March, Swifty made the following purchases of CDs. March 5 March 13 (1) 4,875 @ $8 6,825 @ $9 (2) During March 21,000 units were sold. Swifty uses a periodic inventory system. ✓ 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? FIFO LIFO March 21 Average-cost March 26 eTextbook and Media 7,850 $10 5,800 @ $11 produces the highest inventory amount for the balance sheet, $ produces the highest cost of goods sold on the income statement, $
Blue Spruce Corp. markets CDs of numerous performing artists. At the beginning of March, Blue Spruce had in beginning inventory 2,600 CDs with a unit cost of $8. During March, Blue Spruce made the following purchases of CDs. March 5 2,100 @ $9 March 21 5,500 @ $11 March 13 3,700 @ $10 March 26 2,100 @ $12 During March 12,200 units were sold. Blue Spruce uses a periodic inventory system. (a) Correct answer iconYour answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale $enter the cost of goods available for sale in dollars Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) (b) 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.) FIFO LIFO AVERAGE-COST The…
Whispering Winds Corp. markets CDs of numerous performing artists. At the beginning of March, Whispering Winds had in beginning inventory 2,800 CDs with a unit cost of $8. During March, Whispering Winds made the following purchases of CDs. March 5 2,000 @ $9 March 21 5,200 @ $11 March 13 4,000 @ $10 March 26 2,000 @ $12 During March 11,900 units were sold. Whispering Winds uses a periodic inventory system. Determine the cost of goods available for sale. The cost of goods available for sale $enter the cost of goods available for sale in dollars Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) Average Cost $enter an average cost in dollars 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.) FIFO LIFO AVERAGE-COST The ending…
Bramble Distribution markets CDs of numerous performing artists. At the beginning of March, Bramble had in beginning inventory 4,300 CDs with a unit cost of $6. During March, Bramble made the following purchases of CDs. March 5 March 13 5,375 @ $7 7,525 $8 (a) March 21 Your answer is incorrect. March 26 During March 23,000 units were sold. Bramble uses a periodic inventory system. Determine the cost of goods available for sale. 8,450 @ $9 6,600 @ $10 Cost of goods available for sale $
Blue Spruce Distribution markets CDs of numerous performing artists. At the beginning of March, Blue Spruce had in beginning inventory 2,420 CDs with a unit cost of $7. During March, Blue Spruce made the following purchases of CDs. March 5 1,800 @ $8 March 21 5,030 e $10 March 13 3,670 e $9 March 26 1.840 @ $11 During March, 12.310 units were sold. Blue Spruce uses aperiodic inventory system. (a) Your answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale 1349 10 eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) 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). (For calculation purposes, round average cost per unit to 3 decimal places, eg 5.275. Round answers to O decimal places, eg 125) FIFO LIFO AVERAGE-COST The ending inventory 24 %24 The cost of goods sold %24

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