Problem 62A

Dyna Distribution markets CDs of the performing artist King James. At the beginning of March, Dyna had in beginning inventory 4,100 King James CDs with a unit cost of $7 During March, Dyna made the following purchases of King James CDs.

Oct 3 5,125 @ $8

Oct 9 7,175 @ $9

Oct 19 6,150 @ $10

Oct 25 8,200 @ $11

During March, 22,345 units were sold. Dyna uses a periodic inventory system.

Determine the cost of goods available for sale.

The cost of goods available for sale $

Average cost per unit $

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and averagecost). (Round answers to 0 decimal places, e.g. $2,120.)

FIFO LIFO AVERAGECOST

The ending inventory $ $ $

The cost of goods sold $ $ $

Which cost flow method results in:

(1) the highest inventory amount for the balance sheet?

(2) the highest cost of goods sold for the income statement?

(1) produces the highest inventory amount, $ .

(2) produces the highest cost of goods sold, $ .