Doom's Da\ Distribution markets CDs ol the performing artist Harrilyn Hannson. At the beginning ol March, Doom's Day had in beginning inventory 1.500 Hannson CDs with a unit c ol $7. During March Doom's Da\ made the following purchases of Hannson CDs.

During March 13,500 units were sold. Doom's Daj 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 3.000 @ $8 5.500 @ $9 March 21 March 26 4.000 @ $10 2,000 @ $11