Analysis of various methods of inventory system and its

Assignment Help Financial Accounting

Reference no: EM13356608

Analysis of various methods of inventory system and its effect on ending inventory and cost of goods sold.

Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory 1,510 Clooney CDs with a unit cost of $7. During March Glanville made the following purchases of Clooney CDs.

March 5	3,010 @ $8	March 21	4,010 @ $10
March 13	5,510 @ $9	March 26	2,010 @ $11

During March 12,500 units were sold. Glanville uses a periodic inventory system.

Correct.
Incorrect.

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. (Round the unit cost in the average cost method to 3 decimal places. Use the rounded amounts for subsequent calculations. Round final answers to 0 decimal places.)

	FIFO	LIFO	Average Cost
Ending Inventory	$ 37,510	$ 26,890	$ 32394
Cost of Goods Sold	$ 108,940	$ 119,560	$ ?????

Correct.

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

Lowest inventory amount	LIFO
Lowest cost of goods sold	FIFO

Reference no: EM13356608

Questions Cloud

Application of lifo fifo and weighted average method of : application of lifo fifo and weighted average method of inventory system.lakia corporation reported the following

Analysis of various methods of inventory system and its : analysis of various methods of inventory system and its effect on ending inventory and cost of goods sold.glanville

Effects of fifo and lifo system of inventoriescompany a and : effects of fifo and lifo system of inventories.company a and company b sells the same product. the cost of this product

Effects of lifo and fifo methods of inventory system on : effects of lifo and fifo methods of inventory system on ending inventory.company a and company b sell the same product.

Analysis of various methods of inventory system and its : analysis of various methods of inventory system and its effect on ending inventory and cost of goods sold.glanville

Calculation of cost of goods sold in perpetual inventory : calculation of cost of goods sold in perpetual inventory system.the following information has been taken from the

Calculation of inventory value and total manufacturing : calculation of inventory value and total manufacturing cost.the following information has been taken from the perpetual

Identification of several factors of : identification of several factors of materiality.materialityanbspidentify several factors considered by an accountant

Essay type question based on adequate disclosureadequate : essay type question based on adequate disclosure.adequate disclosureanbspbriefly explain what is meant by the principle

User Account

All Pages