Novak Distribution markets CDs of numerous performing artists. At the beginning of March, Novak had in beginninginventory 2,580 CDs with a unit cost of $7. During March, Novak made the following purchases of CDs.March 5March 131,910(a)3,230$8$9March 21March 26During March, 11,530 units were sold. Novak uses a periodic inventory system.Determine the cost of goods available for sale.$102,040 @ $11Cost of goods available for sale $5,070

Name: Novak Distribution markets CDs of numerous performing artists. At the
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Description: Novak Distribution markets CDs of numerous performing artists. At the beginning of March, Novak had in beginninginventory 2,580 CDs with a unit cost of $7. During March, Novak made the following purchases of CDs.March 5March 131,910(a)3,230$8$9March

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ventory 2,580 CDs with a unit cost of $7. During March, Novak made the following purchases of CDs. March 5 March 13 1,910 @ $8 3,230 @ $9 ) March 21 March 26 5,070 @ $10 2,040 @ $11 uring March, 11,530 units were sold. Novak uses a periodic inventory system.

ventory 2,580 CDs with a unit cost of $7. During March, Novak made the following purchases of CDs. March 5 March 13 1,910 @ $8 3,230 @ $9 ) March 21 March 26 5,070 @ $10 2,040 @ $11 uring March, 11,530 units were sold. Novak uses a periodic inventory system.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...

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Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
Carla Company uses the perpetual inventory system. The following information is available for January of the current year when Carla sold 1,600 units of inventory on January 14. Using the FIFO method, calculate Carlas cost of goods sold for January and its January 31 inventory.
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Whispering Winds Corp. markets CDs of numerous performing artists. At the beginning of March, Whispering Winds had in beginning inventory 2,800 CDs with a unit cost of $8. During March, Whispering Winds made the following purchases of CDs. March 5 2,000 @ $9 March 21 5,200 @ $11 March 13 4,000 @ $10 March 26 2,000 @ $12 During March 11,900 units were sold. Whispering Winds uses a periodic inventory system. Determine the cost of goods available for sale. The cost of goods available for sale $enter the cost of goods available for sale in dollars Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) Average Cost $enter an average cost in dollars 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 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending…
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Cullumber Distribution markets CDs of numerous performing artists. At the beginning of March, Cullumber had in beginning inventory 2,800 CDs with a unit cost of $8.00. During March, Cullumber made the following purchases of CDs. March 5 March 13 1,900 @ 3,200 @ Cost of goods available for sale $ $9.00 S $10.00 Determine the cost of goods available for sale. During March 11,600 units were sold. Cullumber uses a periodic inventory system. Weighted average cost per unit $ eTextbook and Media Ending inventory $ March 21 Calculate weighted average cost per unit. (Round answer to 3 decimal places, eg. 5.125.) Cost of goods sold $ March 26 eTextbook and Media i Determine (1) the ending inventory and (2) the cost of goods sold under each of the assured cost flow methods (FIFO, LIFO, and average-cost). (Round answers to O decimal places, eg. 125.) FIFO 5,200 @ 1,900 $ $11.00 $12.00 $ LIFO AVERAGE-COST
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