Dyna Distribution markets CDs of the performing artist King James. At the beginning of March, Dyna had in beginning inventory 3,120 King James CDs with a unit cost of $3 During March, Dyna made the following purchases of King James CDs.
March 5 7,280 @ $7
March 21 4,160 @ $12
March 13 8,320 @ $8
March 26 4,160 @ $13
During March, 20,800 units were sold. Dyna uses a periodic inventory system.
Determine the cost of goods available for sale.
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. $2,120.) FIFO LIFO AVERAGE-COST The ending inventory $ $ $ The cost of goods sold $ $ $ LINK TO TEXT LINK TO VIDEO 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?
(1) FIFOLIFO produces the highest inventory amount, $ .
(2) FIFOLIFO produces the highest cost of goods sold, $ .