Vaughn Distribution markets CDs of the performing artist Unique. At the beginning of October, Vaughn had in beginning inventory 2,000 of Unique’s CDs with a unit cost of $5. During October, Vaughn made the following purchases of Unique’s CDs.Oct. 3 2,500 @ $6 Oct. 19 3,000 @ $8Oct. 9 3,500 @ $7 Oct. 25 4,000 @ $9During October, 10,850 units were sold. Vaughn uses a periodic inventory system. (b2)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 answers to O decimal places, e.g. 1,250.)FIFOLIFOAVERAGE-COSTThe ending inventory$$The cost of goods sold$eTextbook and MediaSave for Later(c)Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods soldfor the income statement?(1)produces the highest inventory amount, $(2)produces the highest cost of goods sold, $eTextbook and MediaSave for Later%24%24%24 (a)Determine the cost of goods available for sale.Cost of goods available for sale$eTextbook and MediaSave for Later(b1)Calculate cost per unit. (Round answer to 2 decimal places, eg. 2.25.)Cost per uniteTextbook and MediaSave for Later

Under FIFO, it is assumed that goods purchased first are sold first and under LIFO, vice versa.

Vaughn Distribution markets CDs of the performing artist Unique. At the beginning of October, Vaughn had in beginning inventory 2,000 of Unique’s CDs with a unit cost of $5. During October, Vaughn made the following purchases of Unique’s CDs. Oct. 3 2,500 @ $6 Oct. 19 3,000 @ $8 Oct. 9 3,500 @ $7 Oct. 25 4,000 @ $9 During October, 10,850 units were sold. Vaughn uses a periodic inventory system

Vaughn Distribution markets CDs of the performing artist Unique. At the beginning of October, Vaughn had in beginning inventory 2,000 of Unique’s CDs with a unit cost of $5. During October, Vaughn made the following purchases of Unique’s CDs. Oct. 3 2,500 @ $6 Oct. 19 3,000 @ $8 Oct. 9 3,500 @ $7 Oct. 25 4,000 @ $9 During October, 10,850 units were sold. Vaughn uses a periodic inventory system

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 24CE: Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the...

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

Similar questions

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