Soul patrol distribution | Accounting homework help
Soul Patrol Distribution markets CDs of the performing artist Taylor Hicks. At the beginning of October, Soul Patrol had in beginning inventory 2,000 of Hicks’s CDs with a unit cost of $7. During October Soul Patrol made the following purchases of Hicks’s CDs.
During October, 11,400 units were sold. Soul Patrol uses a periodic inventory system.
Instructions
(a) Determine the cost of goods available for sale.
(b) 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.
(c) 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 incomestatement?
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now