Determine (1) the ending inventory and (2) the cost of goods sold under each of

Question

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)

Marin Inc. markets cDs of numerous performing artists. At the beginning of March, Marin Inc. had in beginning inventory 2,390 CDs with a unit cost of $8. During March, Marin Inc. made the following purchases of CDs. March S2,110 $9March 21 5,000 $11 March 13 3,360 $10 Mrch 26 1,970 $12 During March 11,310 units were sold. Marin Inc, uses a periodic inventory system. Your answer is correct. (a) Determine the cost of goods available for sale. The cost of goods available for sale (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125. Average Cost 1502 10.13

Explanation / Answer

Solution:

Computation of COGS and ending inventory - Periodic FIFO Particulars Cost of goods available for sale Cost of goods sold Ending Inventory Nos of units Unit Cost Cost of goods available for sale Nos of units sold Unit Cost Cost of goods sold Nos of units in ending inventory Unit Cost Ending inventory Beginning inventory 2390 $8.00 $19,120 2390 $8.00 $19,120.00 0 $8.00 $0.00 Purchases: 5-Mar 2110 $9.00 $18,990 2110 $9.00 $18,990.00 0 $9.00 $0.00 13-Mar 3360 $10.00 $33,600 3360 $10.00 $33,600.00 0 $10.00 $0.00 21-Mar 5000 $11.00 $55,000 3450 $11.00 $37,950.00 1550 $11.00 $17,050.00 26-Mar 1970 $12.00 $23,640 1970 $12.00 $23,640.00 Total 14830 $150,350 11310 $109,660.00 3520 $40,690.00

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