Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At

Question

Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory 1,500 Clooney CDs with a unit cost of $7. During March Glanville made the following purchases of Clooney CDs.
March 5 3,000 @ $8 March 21 4,000 @ $10
March 13 5,500 @ $9 March 26 2,000 @ $11


Determine the cost of goods available for sale.
$





Determine the cost of goods available for sale.


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. 125.)
FIFO LIFO Average Cost
Ending Inventory $ $ $
Cost of Goods Sold $ $ $

Explanation / Answer

Given information: Beginning inventory         1,500 units       @7               $10,500 March 5th Purchase        3,000                  8                  24,000 March 13th Purchase      5,500                  9                  49,500 March 21st Purchase      4,000                  10                 40,000 March 26th Purchase      2,000                  11                 22,000 Available for sale during month                                        16,000 units                            $146,000 Cost of goods sold using FIFO: Most recent costs, March 26th Purchase      2,000   11     22,000 Next                      March 21st Purchase      4,000    10     40,000 Next                      March 13th Purchase    5,500      9      49,500 Next                     March 5th Purchase      3,000       8       24,000 Inventory, March 31                                 14,500 units      $135,500 Now the cost of goods sold can be calculated as follows; Beginning inventory, March 1            $10,500 Purchases                                         135,500 Cost of merchandise available for sale $146,000 Less ending inventory                            135,500 Cost of merchandise sold                      $10,500 Most recent costs, March 26th Purchase      2,000   11     22,000 Next                      March 21st Purchase      4,000    10     40,000 Next                      March 13th Purchase    5,500      9      49,500 Next                     March 5th Purchase      3,000       8       24,000 Inventory, March 31                                 14,500 units      $135,500 Now the cost of goods sold can be calculated as follows; Beginning inventory, March 1            $10,500 Purchases                                         135,500 Cost of merchandise available for sale $146,000 Less ending inventory                            135,500 Cost of merchandise sold                      $10,500

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