oistribution markets cos of numerous performing artists. At the beginning of Mar

Question

oistribution markets cos of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 2.79e cos wth a unit cost of $8. During March, Dunbar made the follow March 13 a 917 o sio March 26 2.238 e $12 During March 13,428 units were sold. Dunbar uses a periode inventory system. (a) Determine the cost of goods available for sale. The cost of goods avalable for sale (I) Calculate Average cost, Wound answer to 3 decimalplaces, e 5.12s.) Determine (s) the ending inventory and (2) the cost of goods sold under each of the assumed cost now methods (FIFO, LIFO, and average cost). (Rawnd answers to o decimal placen, 12s) The ending inventory The cost of goods sold s

Explanation / Answer

Cost of Goods available for sales
Qty Rate Value
Opening inventory 2798 8            22,384
Purchases
Mar-05 2238 9            20,142
Mar-13 3917 10            39,170
Mar-21 5595 11            61,545
Mar-26 2238 12            26,856
Cost of goods available for sales 13988        1,70,097
Average Cost
Cost of goods available for sales 170097
Total number of inventory 13988
Average Cost (170097/13988) 12.16
Ending Inventory and Cost of Goods Sold
Ending Inventory
Under FIFO Method
Qty Rate Amount
Total Sales 13428
Less: Opening Inventory -2798
Less: Purchased on mar. 05 -2238
Less: Purchased on mar. 13 -3917
Less: Purchased on mar. 21 -4475
Balance at march 21st purchase 1120 11            12,320
March 26th Purchase 2238 12            26,856
Closing inventory under FIFO            39,176
Under LIFO Method
Qty Rate Amount
Total Sales 13428
Less: Purchased on mar. 26 -2238
Less: Purchased on mar. 21 -5595
Less: Purchased on mar. 13 -3917
Less: Purchased on mar. 05 -1678
Balance on march 5th purchase 560 9              5,040
Balance from openings 2798 8            22,384
Closing inventory under FIFO            27,424
Average Cost Method Qty avg Rate Amount
Opening inventory 2798
Add: Purchases 13988
Less: Sales 13428
Closing Balance (2798+13988-13428) 3358 12.16            40,834
Cost of Goods Sold
FIFO Method Qty Rate Amount
Opening inventory 2798 8            22,384
Add: Purchased on mar.05 2238 9            20,142
Add: Purchased on mar.13 3917 10            39,170
Add: Purchased on mar.21 4475 11            49,225
Total Sales and Cost of goods sold 13428        1,30,921
LIFO Method Qty Rate Amount
Purchased on mar.26 2238 12            26,856
Purchased on mar.21 5595 11            61,545
Purchased on mar.13 3917 10            39,170
Purchased on mar.05 1678 9            15,102
13428        1,42,673
Average Cost Method Qty avg Rate Amount
Cost of goods sold 13428 12.16        1,63,287

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