Which cost flow method results in 1 the highest inventory

Reference no: EM13568289

6-2B Savage Distribution markets CDs of the performing artist Little Sister. At the beginning of October, Savage had in beginning inventory 1,200 Sister's CDs with a unit cost of $5. During October, Savage made the following purchases of Sister's CDs.

Oct. 3 4,000 @ $6	Oct. 19 2,500 @ $8
Oct. 9 3,000 @ $7	Oct. 25 2,000 @ $9

During October 9,400 units were sold. Savage 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 (FIFP, LIFO, and average -cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO method. (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?

Reference no: EM13568289

Questions Cloud

Materials are added at the beginning of the process what is : corsi company had the following department

Bruceton hotels is an all-equity firm with 60000 shares of : bruceton hotels is an all-equity firm with 60000 shares of stock outstanding. the stock has a beta of 1.27 and a

Assume that the required reserve ratio is 15 if the federal : assume that the required reserve ratio is 15. if the federal reserve buys a 10000 government bond from an individual in

If an allied chemical zero-coupon bond due in 12 years is : if an allied chemical zero-coupon bond due in 12 years is selling for 420.00 what is its yield to

Which cost flow method results in 1 the highest inventory : 6-2b savage distribution markets cds of the performing artist little sister.nbspnbsp at the beginning of october savage

Please write a film review about the home alone 1 or home : please write a film review about the home alone 1 or home alone 2 movieassignment descriptionto write a film review.

Bigelow company budgets payroll at 4000 per month plus a : bigelow company budgets payroll at 4000 per month plus a percentage of monthly sales. the june operation expense budget

You have projected that dividends will grow at a rate of : you are considering buying common stock in grow on inc. the firm yesterday paid a dividend of 7.80. you have projected

Byters on call provides computer repairs on-site and has a : byters on call provides computer repairs on-site and has a contribution margin ratio of 32 a contribution margin per

User Account

All Pages