On December 1, Bargain Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial #1045, was purchased on November 1 for $90. The last player, serial #1056, was purchased on November 30 for $80. Refer to E6-3 (a,b).

Q1, If Bargain 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?

Q2,Which inventory method do you recommend that Bargain use? Explain why.

This is AE6-3. On December 1, Nadia Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $189. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $114. Another, with serial #1045, was purchased on November 1 for $95. The last player, serial #1056, was purchased on November 30 for $85.

And one more question.

Lu Company had a beginning inventory of724units of Product Ribo at a cost of $1per unit. During the year, purchases were:

Feb. 20	1,086	@	$4	Aug. 12	543	@	$11
May 5	905	@	$5	Dec. 8	362	@	$12

Lu Company uses a periodic inventory system. Sales totaled2,715units.

Q .Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average).(Round answers to 0 decimal places, e.g. $2,120.) Average cost per unit $ 5.5. The cost of good available for sale $19910.

FIFO	LIFO	AVERAGE-COST
The ending inventory	$	$	$
The cost of goods sold	$	$	$