Cheyenne Corp. markets CDs of numerous performing artists. At the beginning of March, Cheyenne Corp. had in beginning inventory2,390CDs with a unit cost of $7. During March, Cheyenne Corp. made the following purchases of CDs.

March 5 2,030@$8

March 2 15,060@$10

March 13 3,260@$9

March 26 1,800@$11

During March11,470units were sold. Cheyenne Corp. uses a periodic inventory system.

a)Determine the cost of goods available for sale.

The cost of goods available for sale $

b)Calculate Average Cost (Round answer to 3 decimal places, e.g. 5.125.)

Average Cost: $

C.) 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).(Round answers to 0 decimal places, e.g. 125.)

FIFO LIFO AVERAGE-COST

The ending inventory$

The cost of goods sold$

D.) Which cost flow method results in:

(1) the highest inventory amount for the balance sheet.

• Average Cost, LIFO, OR FIFO

(2) the highest cost of goods sold for the income statement?

• Average Cost, LIFO, OR FIFO