Express Distribution markets CDs of the performing artist Fishe. At the beginning of October, Express had in beginning inventory 2,000 of Fishe's CDs with a unit cost of $7. During October, Express made the following purchases of Fishe's CDs.

During October, 10,900 units were sold. Express uses a periodic inventory system.

Oct. 3	2,500 @ $8	Oct. 19	3,000 @ $10
Oct. 9	3,500 @ $9	Oct. 25	4,000 @ $11

A. Determine the cost of goods available for sale.

B. Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost).

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?

(a)	Page 317
COST OF GOODS AVAILABLE FOR SALE
									Unit		Total
Date	Explanation					Units			Cost		Cost
(b)
FIFO
(1) Ending Inventory							(2) Cost of Goods Sold
			Unit		Total
Date	Units	x	Cost	=	Cost
Proof of Cost of Goods Sold
			Unit		Total
Date	Units	x	Cost	=	Cost
LIFO
		(1) Ending Inventory					(2) Cost of Goods Sold
			Unit		Total
Date	Units	x	Cost	=	Cost

(b) (Continued) and (c)
LIFO
(b)	Proof of Cost of Goods Sold
						Unit			Total
			Date	Units	x	Cost		=	Cost
AVERAGE COST
	(1)	Ending Inventory				(2) Cost of Goods Sold
		Unit		Total
Units	x	Cost	=	Cost
(c) (1)
(2)