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Question - 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.
March 5
3,000 @ $8
March 21
4,000 @ $10
March 13
5,500 @ $9
March 26
2,000 @ $11
During March 12,500 units were sold. Glanville uses a periodic inventory system.
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.)
Determine the cost of goods available for sale.
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?
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