problem: Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the starting of March, Glanville had in starting inventory 1,510 Clooney CDs with a unit cost of $7. During March Glanville made the following buys of Clooney CDs.
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March 5
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3,010 @ $8
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March 21
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4,010 @ $10
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March 13
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5,510 @ $9
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March 26
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2,010 @ $11
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During March 12,500 units were sold. Glanville uses a periodic inventory system.
Correct;
Incorrect;
Determine (1) the ending inventory & (2) cost of goods sold under each of the assumed cost flow methods [FIFO, LIFO, & average-cost]. Prove the accuracy of cost of goods sold under the FIFO & LIFO methods. [Round the unit price in average cost method to three (3) decimal places. Apply the rounded amounts for subsequent computations. Round your final answers to 2 (2) decimal places.]
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FIFO
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LIFO
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Average Cost
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Ending Inventory
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$ 37,510
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$ 26,890
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$ 32394
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Cost of Goods Sold
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$ 108,940
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$ 119,560
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$ ?????
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Correct.
Determine which cost flow method results in (1) the lowest inventory amount for the balance sheet, & (2) the lowest cost of goods sold for the income statement?
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Lowest inventory amount
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LIFO
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Lowest cost of goods sold
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FIFO
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