Problem 6-2A

Pronghorn Corp markets CDs of numerous performing artists. At the beginning of March, Pronghorn Corp had in beginning inventory 2,600 CDs with a unit cost of $7. During March, Pronghorn Corp made the following purchases of CDs. March 5 1,940 @ $8 March 21 4,990 @ $10 March 13 3,320 @ $9 March 26 1,810 @ $11 During March 10,950 units were sold. Pronghorn Corp uses a periodic inventory system.

a) Determine the cost of goods available for sale.

The cost of goods available for sale $

(b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

Average Cost $

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 125.)

The ending inventory $ $ $ and The cost of goods sold $ $ $ for

FIFO

LIFO

AVERAGE-COST