Design 12 ~ A A Aav ab x, x AA 21 41 A Styli Problem 6-2B XCorp markets and distributes CD's. At MAR 01. XCorp had 1,500 CD's with a unit cost of $7 in beginning inventory. During MAR XCorp made these purchases XCom, uses a periodic inventory system) Date Explenaton Units Unit Cost Total Cost Mar 05 Beg INV 1,500 $7 10,500 Mar 05 Purchase 3,000 8 24,000 Mar 13 Purchase 4,500 9 40,500 Mar 21 Purchase 4,000 10 40,000 Mar 26 Purchase 2,500 11 27,500 Totals 15,500 142,500 During March 12,000 units were sold. 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). No "proof" needed. (Round average cost per unit to 3 decimal places.) (c) Which cost flow method results in (1) the highest inventory amount for the balance (a) sheet and (2) the highest cost of goods sold for the income statement? COST OF GOODS AVAILABLE FOR SALE Date Explanation Units March 1 Beg Inventory 1,500 5 Purchase 13 Purchase 21 Purchase 26 Purchase Unit Cost Total Cost 7 10,500 (b) FIFO Ending Inventory Date Units Unit Cost Total Cost Cost of Goods Sold Cost of Goods Avail for Sale Less: Ending Inventory 142,500 15,500-12,000+3,500 LIFO Ending Inventory Units Unit Cost Total Cost (b) Date English (India). Cost of Goods Sold Cost of Goods Sold Focus B +(a) 11 COST OF GOODS AVAILABLE FOR SALE Date Explanation Units March 1 Beg Inventory 1,500 5 Purchase 13 Purchase 21 Purchase 26 Purchase Unit Cost Total Cost 7 10,500 (b) FIFO Ending Inventory Date Units Unit Cost Total Cost Cost of Goods Sold Cost of Goods Avail for Sale Less: Ending Inventory 142,500 15,500-12,000+ 3,500 Cost of Goods Sold (b) LIFO Ending Inventory Date Units Unit Cost Total Cost Cost of Goods Sold Cost of Goods Avail for Sale Less: Ending Inventory 142,500 Cost of Goods Sold (b) Average Cost Ending Inventory Unit Units Cost Cost of Goods Sold Total Cost of Goods Avail for Sale 142,500 Cost Less: Ending Inventory Cost of Goods Sold Below-Indicate which one, either FIFO or LIFO (c) (1) LIFO or FIFO produces the highest inventory amount. (2) LIFO or FIFO produces the highest cost of goods sold