The Audiophile sells high-performance stereo equipment. Massachusetts Acoustic recently

introduced the CARNEGIE-440, A STATE-OF-THE-ART SPEAKER SYSTEM. During the current

year, The Audiophile purchased nine of these speaker systems at the following dates and acquisition

costs:

Date Units purchased Unit cost Total cost

Oct. 1 2 $3,000 $6,000

Nov. 17 3 3,200 9,600

Dec. 1 4 3,250 13,000

Available for sale during the year 9 $28,600

On Nov, 21. The Audiophile sold four of these speaker systems to the Boston Symphony. The other five

Carnegie-440s remained in inventory at December 31.

Instructions:

a. Compute the cost of goods sold relating to the sale of Carnegie-440s speakers to the Boston Symphony

using following flow assumptions:

1. First-in, first-out (FIFO)

2. Last-in, first-out (LIFO)