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I need help with E6-3... On December 1, Discount Electronics Ltd, has three DVD players left in stock are identical, all are priced to sell
I need help with E6-3...
On December 1, Discount Electronics Ltd, has three DVD players left in stock are identical, all are priced to sell at NT $4, 500. One of the three DVD players left in stock with serial #1012 was purchased on June 1 at a cost of NT %3,000. Another, with #1045, was purchased on November 1 for NT$2, 760. The last player, serial *1056 purchased on November 30 for NT %2, 520. Instructions (a) Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Discount Electronics year-end. (b) If Discount Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively choosing" which particular players to sell to the two customers? What would Discount's cost of goods sold be if the company wished to minimize earnings? Maximize earnings? (c) Which of the two inventory methods do you recommend that Discount use? Explain why. Zhu Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts Information relating to Zhu's purchases of xpert snowboards during September is shown on the next page. During the same month 121 Xpert snowboards were sold. Zhu's shows on the next page. During the same month, 121 Xpert snowboards were sold, Zhu's uses a periodic inventory systemStep by Step Solution
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