Acc100 Accounting: P6-2A Kyoto Distribution markets CDs of the performing artist

Acc100 Accounting

P6-2A, Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis.
Kyoto Distribution markets CDs of the performing artist A. A. Bondy. At the beginning of March,
Kyoto had in beginning inventory 1,500. Bondy CDs with a unit cost of 7
During March Kyoto made the following purchases of Bondy CDs.
Date: Quantity: Cost: Date: Quantity: Cost:
40,973 3,000 8 40,989 4,000 10
40,981 5,500 9 40,994 2,000 11
During March, 12,500 units were sold. Kyoto 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.
(c) Which cost fl ow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?
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