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Question:
See-it-Again sells old movies on DVD. At the beginning of October, See-it-Again had in beginning inventory 1100DVDs with a unit cost of$5. During October, See~it again made the following purchases of DVDs.
October 3 3850@$6October 9 4400@$7October 19 3300@$8October 252200@$9
During October, 12100 units were sold. The eompany uses a periodie inventory system.
REQUIRED
a. Determine the eost of goods available for sale.
b. Determine the ending inventory and the cost of goods sold under each of the cost flow methods of FIFO, LIFO, and weighted average cost.
c."Which cost flow method results in first, the highest inventory amount for the balance sheet, and seeond, the highest cost ofgoods sold?
To illustrate the types of financial statement formats used by American corporations and to enable you to learn where to find key financial information on your company.
Was the CPA correct in suggesting that the company really earned a "profit" for the month?
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