ACCT 2000 Study Guide - Midterm Guide: Income Statement
Document Summary
Its records show the following for the month of may, in which 74 units were sold. Calculate the ending inventory at may 31 using the a) fifo, b) average cost and c) lifo. Prove the amount allocated to cost of goods sold under each method. Mullins distribution markets cds of numerous performing artists. At the beginning of march, mullins had in beginning inventory 2,500 cds with a unit cost of . During march, mullins made the following purchases of cds: 3/26 2000 x 22= 22000 goods available in units (15,000) goods available in dollars (137,000 ) Determine 1) ending inventory and 2) cost of goods sold under each of the assumed cost flow methods (fifo, lifo, average cost). Fifo the first goods in are the first goods sold- when you are using fifo you are selling the oldest items and are kept with the newest in inventory. Cogs= all of what is after the equal signs added= 105,000.
