The Audiophile sells high-performance stereo equipment.[1] During the current year, The Audiophile began purchasing a new state-of-the-art speaker system at the following dates and acquisition costs:

Total cost

Oct. 1 2 @ $3000 $ 6,000

Nov. 17 3 @ $3200 $ 9,600

Dec. 1 4 @ $3250 $13,000

COGAFS 9 units $28,600

On November 21, The Audiophile sold 4 of the new speaker systems for $5000 each. The other 5 units remained in inventory at December 31.

REQUIRED:

1. Assuming that Audiophile uses a perpetual inventory system, compute (i) the COGS (ii) Ending Inventory, and (iii) gross profit using each of the following inventory cost assumptions. Put your answer in the table below.

	i. COGS	ii. Ending Inv.	iii. Gross profit
i. FIFO
ii. LIFO
iii. Average cost

2. Assuming that Audiophile uses a periodic inventory system, compute the i) COGS, ii) Ending inventory, and iii) Gross profit using each of the following inventory cost assumptions. Put your answer in the table below.

	i. COGS	ii. Ending Inv.	iii. Gross profit
i. FIFO
ii. LIFO
iii. Average cost

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[1] Source of Problem: Meigs, Williams, Haka, Bettner, Accounting, p. 356