Apocalypse Distribution markets CDs of the performing artist Harrilyn Hann- Determine cost of goods sold son. At the beginning of March, Apocalypse had in beginning inventory 1,500 Hannson and ending inventory using CDs with a unit cost of $7. During March Apocalypse made the following purchases of F/FO, LIFO, and average Hannson CDs:

During March 13,500 units were sold. Apocalypse 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?

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March 5 March 13 3,500 @ $8 5,500 @ $9 March 21 March 26 4,000 @ $10 1,500 @ $11