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ventory 2,700 CDs witha unit cost of S6. During March, Bramble made the following purchases of CDs. March 5 March 13 3,700 e 57 e s8 2,000 March 21 4,600 59 March 26 2,000 $10 uring March 11,900 units were sold. Bramble uses a periodicinventory system. Determine the cost of goods available for sale. The cost of goods available for sale s Calculate Average Cost. (Round answer to 3 decimal places, eg. 5.125.) Average Cost s eTextbook and Media List of Accounts 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, eg. 125.) FIFO LIFO AVERAGE-COST The ending inventory The cost of goods sold %24 %24

ventory 2,700 CDs witha unit cost of S6. During March, Bramble made the following purchases of CDs. March 5 March 13 3,700 e 57 e s8 2,000 March 21 4,600 59 March 26 2,000 $10 uring March 11,900 units were sold. Bramble uses a periodicinventory system. Determine the cost of goods available for sale. The cost of goods available for sale s Calculate Average Cost. (Round answer to 3 decimal places, eg. 5.125.) Average Cost s eTextbook and Media List of Accounts 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, eg. 125.) FIFO LIFO AVERAGE-COST The ending inventory The cost of goods sold %24 %24

FINANCIAL ACCOUNTING
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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Options for last question are FIFO, LIFO, and Average-cost

### Inventory Management for Bramble Corp. #### Scenario Overview: Bramble Corp. markets CDs from various performing artists. At the beginning of March, Bramble had an initial inventory of 2,700 CDs, each costing $6. Throughout March, Bramble made several purchases: - **March 5:** 2,000 CDs at $7 each - **March 13:** 3,700 CDs at $8 each - **March 21:** 4,600 CDs at $9 each - **March 26:** 2,000 CDs at $10 each During March, 11,900 units were sold. Bramble uses a periodic inventory system. ### Cost Calculation Section: 1. **Determine the cost of goods available for sale**: - Input Field: The cost of goods available for sale. 2. **Calculate Average Cost**: - Use the formula for Average Cost and round to three decimal places (e.g., 5.125). - Input Field: Average Cost. ### Inventory Valuation Methods: Determine the (1) ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods: FIFO (First-In, First-out), LIFO (Last-In, First-Out), and average-cost. Round answers to 0 decimal places (e.g., 125). #### Table for Input: | | **FIFO** | **LIFO** | **AVERAGE-COST** | |----------------------|---------------------|---------------------|------------------| | **The ending inventory** | [Input Field] | [Input Field] | [Input Field] | | **The cost of goods sold** | [Input Field] | [Input Field] | [Input Field] | ### Analysis Section: Identify which cost flow method results in: 1. The highest inventory amount on the balance sheet. 2. The highest cost of goods sold for the income statement. #### Input Fields: | (1) [Input Field] | produces the highest inventory amount. | | (2) [Input Field] | produces the highest cost of goods sold. | #### Resources: - **eTextbook and Media** - **List of Accounts** This setup will assist you in learning how businesses handle inventory valuation and the impact of different cost flow assumptions on financial statements.
Transcribed Image Text:### Inventory Management for Bramble Corp. #### Scenario Overview: Bramble Corp. markets CDs from various performing artists. At the beginning of March, Bramble had an initial inventory of 2,700 CDs, each costing $6. Throughout March, Bramble made several purchases: - **March 5:** 2,000 CDs at $7 each - **March 13:** 3,700 CDs at $8 each - **March 21:** 4,600 CDs at $9 each - **March 26:** 2,000 CDs at $10 each During March, 11,900 units were sold. Bramble uses a periodic inventory system. ### Cost Calculation Section: 1. **Determine the cost of goods available for sale**: - Input Field: The cost of goods available for sale. 2. **Calculate Average Cost**: - Use the formula for Average Cost and round to three decimal places (e.g., 5.125). - Input Field: Average Cost. ### Inventory Valuation Methods: Determine the (1) ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods: FIFO (First-In, First-out), LIFO (Last-In, First-Out), and average-cost. Round answers to 0 decimal places (e.g., 125). #### Table for Input: | | **FIFO** | **LIFO** | **AVERAGE-COST** | |----------------------|---------------------|---------------------|------------------| | **The ending inventory** | [Input Field] | [Input Field] | [Input Field] | | **The cost of goods sold** | [Input Field] | [Input Field] | [Input Field] | ### Analysis Section: Identify which cost flow method results in: 1. The highest inventory amount on the balance sheet. 2. The highest cost of goods sold for the income statement. #### Input Fields: | (1) [Input Field] | produces the highest inventory amount. | | (2) [Input Field] | produces the highest cost of goods sold. | #### Resources: - **eTextbook and Media** - **List of Accounts** This setup will assist you in learning how businesses handle inventory valuation and the impact of different cost flow assumptions on financial statements.
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