Grouper had in beginning inventory 2,320 CDs with a unit cost of $7. During March, Grouper made the following purchases of CDs.March 5 2,140@$8 March 21 5,440@$10March 13 3,560@$9 March 26 1,910@$11During March, 11,480 units were sold. Grouper uses a periodic inventory system. Why FIFO ending inventory and The cost of goods sold are wrong? Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, andaverage-cost). (For calculation purposes, round average cost per unit to 3 decimal places, e.g. 5.275. Round answers to 0 decimal places,eg. 125.)FIFOLIFOAVERAGE-COSTThe ending inventory38,830$28,800$35,636The cost of goods sold$101,980$112,010$105,168%24%24%24%24%24

Name: Grouper had in beginning inventory 2,320 CDs with a unit cost of $7. D
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Description: Grouper had in beginning inventory 2,320 CDs with a unit cost of $7. During March, Grouper made the following purchases of CDs.March 5 2,140@$8 March 21 5,440@$10March 13 3,560@$9 March 26 1,910@$11During March, 11,480 units were sold. Grouper uses a

FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell…

Answered: Grouper had in beginning inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Grouper had in beginning inventory 2,320 CDs with a unit cost of $7. During March, Grouper made the following purchases of CDs.

March 5		2,140	@	$8		March 21		5,440	@	$10
March 13		3,560	@	$9		March 26		1,910	@	$11

During March, 11,480 units were sold. Grouper uses a periodic inventory system.

Why FIFO ending inventory and The cost of goods sold are wrong?

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, e.g. 5.275. Round answers to 0 decimal places,
eg. 125.)
FIFO
LIFO
AVERAGE-COST
The ending inventory
38,830
$
28,800
$
35,636
The cost of goods sold
$
101,980
$
112,010
$
105,168
%24
%24
%24
%24
%24

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