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 year9$28,600

OnNovember 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 08 marks

Assume that The Audiophile uses aperiodic inventory system.Compute

(1) the cost of goods sold relating to the sale of Carnegie-440 speakers to the

Boston Symphony

(2) the ending inventory of these speakers at December 31, using each of the

following flow assumptions:

a.Average cost.

b.Last-in, first-out (LIIFO)