Assignment: DETERMINE THE AVERAGE COST
1. Culver Corporation markets CDs of numerous performing artists. At the beginning of March, Culver Corporation had in beginning inventory 2,530 CDs with a unit cost of $7. During March, Culver Corporation made the following purchases of CDs.
|
March 5
|
2,180
|
@
|
$8
|
March 21
|
5,110
|
@
|
$10
|
|
March 13
|
3,550
|
@
|
$9
|
March 26
|
2,190
|
@
|
$11
|
During March 11,090 units were sold. Culver Corporation uses a periodic inventory system.
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).
2. Shamrock, Inc. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Shamrock, Inc.'s purchases of EZslide snowboards during September. During the same month, 104 EZslide snowboards were sold. Shamrock, Inc. uses a periodic inventory system.
|
Date
|
Explanation
|
Units
|
Unit Cost
|
Total Cost
|
|
Sept. 1
|
Inventory
|
12
|
$95
|
$ 1,140
|
|
Sept. 12
|
Purchases
|
45
|
98
|
4,410
|
|
Sept. 19
|
Purchases
|
51
|
99
|
5,049
|
|
Sept. 26
|
Purchases
|
19
|
100
|
1,900
|
|
Totals
|
127
|
|
$12,499
|
(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.
(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods.