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Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory 3,900 CDs with a unit cost of $7. During March, Swifty made the following purchases of CDs. March 5 March 13. 4,875 $8 6,825 @ $9 March 21 March 26 7,850 @ $10 5,800 @ $11 During March 21,000 units were sold. Swifty uses a periodic inventory system. 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?

Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory 3,900 CDs with a unit cost of $7. During March, Swifty made the following purchases of CDs. March 5 March 13. 4,875 $8 6,825 @ $9 March 21 March 26 7,850 @ $10 5,800 @ $11 During March 21,000 units were sold. Swifty uses a periodic inventory system. 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?

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...
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Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory 3,900 CDs with a unit cost of $7. During March, Swifty made the following purchases of CDs. March 5 March 13 (1) 4,875 @ $8 6,825 @ $9 (2) During March 21,000 units were sold. Swifty uses a periodic inventory system. ✓ 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? FIFO LIFO March 21 Average-cost March 26 eTextbook and Media 7,850 $10 5,800 @ $11 produces the highest inventory amount for the balance sheet, $ produces the highest cost of goods sold on the income statement, $
Transcribed Image Text:Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory 3,900 CDs with a unit cost of $7. During March, Swifty made the following purchases of CDs. March 5 March 13 (1) 4,875 @ $8 6,825 @ $9 (2) During March 21,000 units were sold. Swifty uses a periodic inventory system. ✓ 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? FIFO LIFO March 21 Average-cost March 26 eTextbook and Media 7,850 $10 5,800 @ $11 produces the highest inventory amount for the balance sheet, $ produces the highest cost of goods sold on the income statement, $
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