a.	Cost of goods available for sale
	Date	Explanation	Units	Unit Cost	Total Cost
	March 1	Beginning inventory
	5	Purchase
	13	Purchase
	21	Purchase
	26	Purchase
		Total
	FIFO
b. 1.	Ending Inventory
	Date	Units	Unit Cost	Total Cost
	March 26
	21
b. 2.	Cost of Goods Sold
	Cost of goods available for sale
	Less: Ending inventory
	Cost of goods sold
	Proof of Cost of Goods Sold
	Date	Units	Unit Cost	Total Cost
	March 1
	5
	13
	21
	LIFO
b. 1.	Ending Inventory
	Date	Units	Unit Cost	Total Cost
	March 1
	5
b. 2.	Cost of Goods Sold
	Cost of goods available for sale
	Less: Ending inventory
	Cost of goods sold
	Proof of Cost of Goods Sold
	Date	Units	Unit Cost	Total Cost
	March 26
	21
	13
	5
	AVERAGE-COST
	Goods available for sale
	Units available for sale
	Average cost per unit
b. 1.	Ending Inventory
	Units	Unit Cost	Total Cost
b. 2.	Cost of Goods Sold
	Cost of goods available for sale
	Less: Ending inventory
	Cost of goods sold
c. 1.		produces the highest inventory at
		produces the highest cost of goods sold at

Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis.
Mullins Distribution markets CDs of numerous performing artists. At the beginning of March, Mullins had in beginning inventory 6,500 CDs with a unit cost of $8.5. During March, Mullins made the following purchases of CDs.
	March 5	3,000 @ $9	March 21	7,000 @ 8
	March 13	2,500 @ $6	March 26	3500 @ $12
During March 15,000 units were sold. Mullins uses a purpetual inventory system.
Instructions
a.	Determine the cost of goods available of 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. (Note: For average-cost, round cost per unit to three decimal places.)
c.	Which cost flow methods 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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