This paper circulates around the core theme of Determine the highest inventory amount for the balance sheet and the highest cost of goods sold for the income statement? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Achilles Distribution markets CDs of the performing artist Vandyver. At
the beginning of October, Achilles had in beginning inventory 2,000 of
Vandyver’s CDs with a unit cost of $7. During October Achilles made the
following purchases of Vandyver’s CDs.Oct. 3 3,000 @ $8 Oct. 19 3,000 @
$10Oct. 9 3,500 @ $9 Oct. 25 3,500 @ $11During October, 11,400 units
were sold. Achilles 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 income
statement?
