Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,520 of Unique's CDs with a unit cost of $7. During October, Glee made the following purchases of Unique's CDs.
|
Oct. 3
|
3,150
|
@
|
$8
|
Oct. 19
|
3,780
|
@
|
$10
|
|
Oct. 9
|
4,410
|
@
|
$9
|
Oct. 25
|
5,040
|
@
|
$11
|
During October, 13,734 units were sold. Glee uses a periodic inventory system.
Determine the cost of goods available for sale
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. 1,250.)
Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?