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?
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?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 32CE: ( Appendix 6B) Inventory Costing Methods: Periodic Average Cost Refer to the information for...
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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?
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