Problem 6-2A Pronghorn Corp markets CDs of numerous performing artists. At the b

Question

Problem 6-2A Pronghorn Corp markets CDs of numerous performing artists. At the beginning of March, Pronghorn Corp had in beginning inventory 2,600 CDs with a unit cost of 7, During March, Pronghorn Corp made the following purchases of CDs. March 3 1,940 $8 March 13 3,3209 During March 10,950 units were sold. Pronghorn Corp uses a periodic inventory system. March 21 4,990 $10 March 26 1.810$11 Your answer is incorrect. Try again. (a) Determine the cost of goods available for sale. The cost of goods available for sale 13341 (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) Average Cost 9.1 LINK TO TEXT Your answer is partially correct. Try again. 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 anding inventory 1221 10600 The cost of goods sold 10 10633 104609. LIST OF ACCOUNTS VIDEO STMILAR PROBLEM

Explanation / Answer

a)cost of goods available for sale=(2600*7)+(1940*8)+(3320*9)+(4990*10)+(1810*11)=133410
b)average cost=(2600*7)+(1940*8)+(3320*9)+(4990*10)+(1810*11)/(2600+1940+3320+1810+4990)=9.1

FIFO: forst in first out
cost of goods sold=(2600*7)+(1940*8)+(3320*9)+(3090*10)=94500
ending invetory=(1900*10)+(1810*11)=38910
LIFO: last in first out
cos of goods sold=(1810*11)+(4990*10)+(3320*9)+(830*8)=106330
ending inventory=(1110*8)+(2600*7)=27080
Average cost
cost of goods sold=9.1*10950=99645
ending inventory=3710*9.1=33761

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