At the beginning of the current year, John Bach Opened a music store that sells compact discs of classical music. The store is called Strictly Classical. During the year, Strictly Classical purchased 10,000 compact discs for $7 each. At the end of the year, a physical inventory count revealed that 1,000 of those discs were on hand. What value should be shown for ending inventory on the year-end balance sheet?

Assume that Strictly Classical purchased 10,000 compact discs as follows:

If the year-end inventory reveals 1,000 discs on hand, what is the inventory value on the balance sheet?

What is the store's cost of merchandise sold using the three cost value method?

Transcribed Image Text:

Jan 1 Mar. 8 June 23 Sept. 15 Total 800 Discs 2,200 4,000 3,000 10.000 Disc $7 $7.50 $7.25 $7.40 $5,600 $16,500 $29,000 $22,200 $73,300 Jan 1 Mar. 8 June 23 Sept. 15 Total 800 Discs 2,200 4,000 3,000 10.000 Disc $7 $7.50 $7.25 $7.40 $5,600 $16,500 $29,000 $22,200 $73,300

Answer rating: 100% (QA)

Cost of goods available for sale Opening inventory All purchases 0 800 x 7 2200 x 750 4000 x 725 300... View the full answer