I already solved part A, just need to correct part B. Ending inventory for FIFO and Cost of good sold for FIFO ## Problem 6-02A a, b1-b2, c (Video)Flounder Distribution markets CDs of the performing artist Fishe. At the beginning of October, Flounder had in beginning inventory 2,800 of Fishe's CDs with a unit cost of $6. During October, Flounder made the following purchases.| Date | Quantity | Unit Cost ||--------|----------|-----------|| Oct. 3 | 3,500 | $7 || Oct. 9 | 4,900 | $8 || Oct. 19| 4,200 | $9 || Oct. 25| 5,600 | $10 |During October, 15,260 units were sold. Flounder uses a periodic inventory system.---### Cost of Goods Available for Sale**Your answer is correct.**Determine the cost of goods available for sale.Cost of goods available for sale: **$174,300**---### Weighted Average Cost Per Unit**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: **$8.33**---### Ending Inventory and Cost of Goods Sold**Your answer is partially correct. 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 all calculations to 2 decimal places, e.g., 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)*| Method | Ending Inventory | Cost of Goods Sold ||------------|------------------|--------------------|| FIFO | $55,660 | $118,640 || LIFO | $37,380 | $136,920 || Average-Cost| $47,642 | $126,658 |---### Determination of Highest Inventory or Cost of Goods Sold**Your answer is partially correct. Try again.**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. **FIFO**

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Description: I already solved part A, just need to correct part B. Ending inventory for FIFO and Cost of good sold for FIFO ## Problem 6-02A a, b1-b2, c (Video)Flounder Distribution markets CDs of the performing artist Fishe. At the beginning of October, Flounder

Closing stock of CDs = Opening stock + Purchases - Sales Closing stock of CDs = 2,800 + 3,500 +…

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Flounder Distribution markets CDs of the performing artist Fishe. At the beginning of October, Flounder had in beginning inventory 2,800 of Fishe's CDs with a unit cost of $6. During October, Flounder made the following purchas Oct. 3 3,500 @ $7 Oct. 19 4,200 @ $9 Oct. 9 4,900 @ $8 Oct. 25 5,600 @ $10 During October, 15,260 units were sold. Flounder uses a periodic inventory system.

Flounder Distribution markets CDs of the performing artist Fishe. At the beginning of October, Flounder had in beginning inventory 2,800 of Fishe's CDs with a unit cost of $6. During October, Flounder made the following purchas Oct. 3 3,500 @ $7 Oct. 19 4,200 @ $9 Oct. 9 4,900 @ $8 Oct. 25 5,600 @ $10 During October, 15,260 units were sold. Flounder uses a periodic inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

I already solved part A, just need to correct part B.
Ending inventory for FIFO and Cost of good sold for FIFO

## Problem 6-02A a, b1-b2, c (Video)

Flounder Distribution markets CDs of the performing artist Fishe. At the beginning of October, Flounder had in beginning inventory 2,800 of Fishe's CDs with a unit cost of $6. During October, Flounder made the following purchases.

| Date | Quantity | Unit Cost |
|--------|----------|-----------|
| Oct. 3 | 3,500 | $7 |
| Oct. 9 | 4,900 | $8 |
| Oct. 19| 4,200 | $9 |
| Oct. 25| 5,600 | $10 |

During October, 15,260 units were sold. Flounder uses a periodic inventory system.

---

### Cost of Goods Available for Sale

**Your answer is correct.**

Determine the cost of goods available for sale.

Cost of goods available for sale: **$174,300**

---

### Weighted Average Cost Per Unit

**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: **$8.33**

---

### Ending Inventory and Cost of Goods Sold

**Your answer is partially correct. 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 all calculations to 2 decimal places, e.g., 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)*

| Method | Ending Inventory | Cost of Goods Sold |
|------------|------------------|--------------------|
| FIFO | $55,660 | $118,640 |
| LIFO | $37,380 | $136,920 |
| Average-Cost| $47,642 | $126,658 |

---

### Determination of Highest Inventory or Cost of Goods Sold

**Your answer is partially correct. Try again.**

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. **FIFO**

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Which of the following statements about the use of the FIFO assumption is NOT true? a.The FIFO assumption assigns the more recent purchase costs to the balance sheet inventory asset account. b.The FIFO assumption is not affected by the inventory control method. c.In periods of rising prices it produces a higher profit than LIFO. d.The FIFO assumption produces inventory asset values that are based on older purchase costs.