Question

Grouper Distribution markets CDs of the performing artist Fishe. At the beginning of October, Grouper had in beginning inventory 2,900 of Fishe's CDs with a unit cost of $6. During October, Grouper made the following purchases of Fishe's CDs.Oct. 3 3,625 @ $7Oct. 9 5,075 @$8Oct. 19 4,350 @ $9Oct. 25 5,800 @ $10During October, 15,805 units were sold. Grouper uses a periodic inventory system.

Answer 1

Cost of goods sold = $131,181.50

Closing inventory = $49,343.50 and 5,945 units

Step-by-step explanation:

As for the information provided,

The inventory is as follows:

Oct 1 2,900 $6 $17,400

Oct 3 3,625 $7 $25,375

Oct 9 5,075 $8 $40,600

Oct 19 4,350 $9 $39,150

Oct 25 5,800 $10 $58,000

Total units in hand = 21,750

Total cost = $180,525

Since, its periodic inventory system,

Cost of goods sold = $180,525/21,750 = $8.30

Total cost of goods sold = $8.30
`*` 15,805 = $131,181.50

Total closing inventory = 21,750 - 15,805 = 5,945 units

Total value of closing inventory = $8.30
`*` 5,945 = $49,343.50