This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: P6-2A
Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory
1,500 Clooney CDs with a unit cost of $7. During March Glanville made the following purchases of Clooney CDs.
3,000 @ $8
4,000 @ $10
5,500 @ $9
2,000 @ $11
During March 12,500 units were sold. Glanville uses a periodic inventory system. Correct.
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 average-cost per unit to 3 decimal places, e.g. 2.250 for computations. Round final answers to 0 decimal places, e.g. 125.)
Cost of Goods Sold
$ 114062 Correct.
Determine the cost of goods available for sale.
$ 146000 Correct.
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
Highest inventory amount
Highest cost of goods sold LIFO ...
View Full Document
This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.
- Spring '10
- Financial Accounting