Problem 1 Mullins Distribution markets CDs of numerous performing artists. T the beginning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $6.50. During March, Mullins made the following purchases of CDs. March 5 2,000 CDs @ $8 March 13 3,500 CDs @ $9 March 21 5,000 CDs @ $10 March 26 2,000 CDs @ 11 During March 12,000 units of CDs were sold. Mullins uses a periodic inventory system. Instructions a. Determine the cost of goods available for sale. b. Determine the ending inventory and cost of goods sold under FIFO. c. Determine ending inventory and cost of goods sold under LIFO. d. Determine the ending inventory and cost of goods sold under average-cost. Round cost per unit to three decimal places. e. Which cost flow method results in the highest inventory amount for the balance sheet? f. Which of the flow method results in the highest cost of goods sold for the income statement?

Problem 2 You have the following information for Van Gogh Inc. for the month ended October 31, 2025. Van Gogh uses a periodic method for inventory. Date Description Units Unit Cost Selling Price per Unit Oct. 1 Beginning inventory 60 $24 - Oct. 9 Purchase 120 $26 - Oct. 11 Sale 100 - $35 Oct. 17 Purchase 100 $27 - Oct. 22 Sale 60 - $40 Oct. 25 Purchase 70 $29 - Oct. 29 Sale 110 - $40 Instructions 1. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under LIFO. 2. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under FIFO. 3. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under Average-cost (round cost per unit to three decimal places.)