Question - Buffalo Industries markets CDs of numerous performing artists. At the beginning of March, Buffalo Industries had in beginning inventory 2,670 CDs with a unit cost of $7. During March, Buffalo Industries made the following purchases of CDs.
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March 5
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2,040 @ $8
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March 21
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5,150 @ $10
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March 13
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3,820 @ $9
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March 26
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1,930 @ $11
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During March 12,440 units were sold. Buffalo Industries uses a periodic inventory system.
(a) Determine the cost of goods available for sale.
(b) Calculate 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).