Posted: December 4th, 2022

P6-2a turner distribution markets | Accounting homework help

Turner Distribution markets CDs of numerous performing artists. At the beginning of March, Turner had in beginning inventory 2,500 CDs with a unit cost of $7. During March, Turner made the following purchases of CDs.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis.

March  5                                              2,000 @ $8

March 13                                             3,500 @ $9

March 21                                             5,000 @ $10

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

March 26                                             2,000 @ $11

During March 12,000 units were sold. Turner uses a periodic inventory system.

Instructions

(a)  Determine the cost of goods available for sale.

(b)  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. (Note: For average-cost, round cost per unit to three decimal places.)

(c)  Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

 

 Check Figures (Cost of goods sold):

           FIFO   $105,000

           LIFO   $115,500

           Average $109,601

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
error: Content is protected !!
Open chat
1
Order through WhatsApp!
professionalsessays.com
Hello!
You Can Now Place your Order through WhatsApp
 

 

Order your essay today and save 30% with the discount code 2022DISCOUNT