P6-2A Glanville Distribution markets CDs of the performing artist Harrilyn Clooney.

At the beginning of March, Glanville had in beginning inventory 1,500 Clooney CDs with a unit cost of During March Glanville made the following purchases of Clooney CDs: Date: Quantity: Cost: Date: Quantity: Cost: Mar 5 3,000 $8 Mar 21 4,000 $10 Mar 13 5,500 $9 Mar 26 2,000 $11 During March 12,500 units were sold. Glanville uses a periodic inventory system.

Name: Key Date: Instructor: Course: Accounting Principles, Eighth Edition by Weygandt, Kieso, and Kimmel Solving Accounting Principles Problems Using Microsoft Excel for Windows by Rex A Schildhouse

Instructions: (a) Determine the cost of goods available for sale. COST OF GOODS AVAILABLE FOR SALE Date Explanation Units Unit Cost Total Cost Mar 1 Inv 10/01 1,500 $7 $10,500 Mar 5 Purchase 3,000 8 $24,000 Mar 13 Purchase 5,500 9 $49,500 Mar 21 Purchase 4,000 10 $40,000 Mar 26 Purchase 2,000 11 $22,000 Total 16,000 $146,000 (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 (1) Date Mar 26 Mar 21

Ending Inventory Units Unit Cost 1,500 $11 2,000 10 3,500

Total Cost $16,500 $20,000 $36,500

Ending inventory = 16,000 available for sale - 12,500 CDs sold = 3,500 CDs Proof of Cost of Goods Sold Date Units Unit Cost Total Cost Mar 1 1,500 $7 $10,500 Mar 5 3,000 8 $24,000 Mar 13 5,500 9 $49,500 Mar 21 2,500 10 $25,000 12,500 $109,000 LIFO (1) Date

Ending Inventory Units Unit Cost

Total Cost

Mar 1 Mar 5

1,500 2,000 3,500

$7 8

$10,500 $16,000 $26,500

Proof of Cost of Goods Sold Date Units Unit Cost Total Cost Mar 26 2,000 $11 $22,000 Mar 21 4,000 10 $40,000 Mar 13 5,500 9 $49,500 Mar 5 1,000 8 $8,000 12,500 $119,500 AVERAGE COST Ending Inventory (1) $ Units 12,500 Unit cost: Total cost: $ 9.13 $114,063 31,937.50

(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? (1) LIFO

(2) FIFO

. At the beginning of March, $7

ory system.

of the assumed cost oods sold under the

ance sheet and (2) the

Name: Instructor: Accounting Principles, Eighth Edition by Weygandt, Kieso, and Kimmel Solving Accounting Principles Problems Using Microsoft Excel for Windows by Rex A Schildhouse

Date: Course:

P6-2A Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory 1,500 Clooney CDs with a unit cost of During March Glanville made the following purchases of Clooney CDs: Date: Quantity: Cost: Date: Quantity: Cost: Mar 5 3,000 $8 Mar 21 4,000 $10 Mar 13 5,500 $9 Mar 26 2,000 $11 During March 12,500 units were sold. Glanville uses a periodic inventory system.

$7

Instructions: (a) Determine the cost of goods available for sale. COST OF GOODS AVAILABLE FOR SALE Explanation Units Unit Cost Total Cost Inv 10/01 Purchase Purchase Purchase Purchase

Date Mar 1 Mar 5 Mar 13 Mar 21 Mar 26 Total

(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. FIFO (1) Date Mar 26 Mar 21

Ending Inventory Units Unit Cost

Total Cost

Ending inventory = 0 available for sale - 12,500 CDs sold = -12,500 CDs Proof of Cost of Goods Sold Date Units Unit Cost Mar 1 Mar 5 Mar 13 Mar 21

Total Cost

FileName: 220109407.xls.ms_office, Tab: Problem P6-2A, Page 5 of 7, 4/1/2014, 4:21 PM

Name: Instructor:
LIFO Accounting Principles, Eighth Edition by Weygandt, Kieso, and Kimmel (1) Date Mar 1 Mar 5 Ending Inventory Units Unit Cost Total Cost

Date: Course:

Proof of Cost of Goods Sold Date Units Unit Cost Mar 26 Mar 21 Mar 13 Mar 5

Total Cost

FileName: 220109407.xls.ms_office, Tab: Problem P6-2A, Page 6 of 7, 4/1/2014, 4:21 PM

Instructions for the Microsoft Excel Templates Detail and information on Excel is contained within the manual. Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one of several help menus. Type your name into the cell "D5". This will be copied by formula to the rest of the pages as required. Type the due date of your problem into cell "I5". This will be copied by formula to the rest of the pages as required. Type the instructor's name into cell "D6". This will be copied by formula to the rest of the pages as required. Type the course identifier into cell "I6". This will be copied by formula to the rest of the pages as required. The problem is identified for you in cell "B7". In "DATE" cells enter the date in any of several formats and Excel will format it correctly. If more than one page is preformatted into the problem, page breaks are preset and formulas are set to copy the header into the remaining pages. Place the proper account title in the cell where the word "ACCOUNT" appears on the template. Place the amount in the cell where the word "AMOUNT" appears on the template. A formula may be placed in

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