Problem 6-2A SHOW LIST OF ACCOUNTS LINK TO TEXT FIFO LIFO AVERAGE-COST SHOW LIST
ID: 2568988 • Letter: P
Question
Problem 6-2A
SHOW LIST OF ACCOUNTS
LINK TO TEXT
FIFO
LIFO
AVERAGE-COST
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Problem 6-2A
Martinez Corp. markets CDs of numerous performing artists. At the beginning of March, Martinez Corp. had in beginning inventory 2,670 CDs with a unit cost of $7. During March, Martinez Corp. made the following purchases of CDs.March 5 2,110 @ $8 March 21 5,460 @ $10 March 13 3,630 @ $9 March 26 2,120 @ $11
During March 12,050 units were sold. Martinez Corp. uses a periodic inventory system.
Explanation / Answer
a) Weighted Average Date Particulars Units Cost Amount COGS 1-Mar Beginning Inventory 2,670.00 7.00 18,690.00 5-Mar Purchase 2,110.00 8.00 16,880.00 13-Mar Purchase 3,630.00 9.00 32,670.00 21-Mar Purchase 5,460.00 10.00 54,600.00 26-Mar Purchase 2,120.00 11.00 23,320.00 The cost of goods available for sale 15,990.00 9.14 146,160.00 COGS 12,050.00 9.14 110,145.59 12050*9.14 Ending Inventory 3,940.00 9.14 36,014.41 3940*9.14 COGS 110,145.59 Ending Inventory 36,014.41 FIFO Date Particulars Units Cost Amount COGS 1-Mar Beginning Inventory 2,670.00 7.00 18,690.00 5-Mar Purchase 2,110.00 8.00 16,880.00 13-Mar Purchase 3,630.00 9.00 32,670.00 21-Mar Purchase 5,460.00 10.00 54,600.00 26-Mar Purchase 2,120.00 11.00 23,320.00 The cost of goods available for sale 15,990.00 146,160.00 COGS 12,050.00 104,640.00 2670*7+2110*8+3630*9+3640*10 Ending Inventory 3,940.00 41,520.00 2120*11+1820*10 COGS 104,640.00 Ending Inventory 41,520.00 LIFO Date Particulars Units Cost Amount COGS 1-Mar Beginning Inventory 2,670.00 7.00 18,690.00 5-Mar Purchase 2,110.00 8.00 16,880.00 13-Mar Purchase 3,630.00 9.00 32,670.00 21-Mar Purchase 5,460.00 10.00 54,600.00 26-Mar Purchase 2,120.00 11.00 23,320.00 The cost of goods available for sale 15,990.00 146,160.00 COGS 12,050.00 117,310.00 2120*11+5460*10+3630*9+840*8 Ending Inventory 3,940.00 28,850.00 1270*8+2670*7 COGS 117,310.00 Ending Inventory 28,850.00 (1) the highest inventory amount for the balance sheet FIFO (2) the highest cost of goods sold for the income statement LIFO
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