Assignment:
Problem
Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,440 CDs with a unit cost of $10. During March, Dunbar made the following purchases of CDs.
| March 5 |
|
2,752 |
|
@ |
|
$11 |
|
March 21 |
|
6,880 |
|
@ |
|
$14 |
| March 13 |
|
4,816 |
|
@ |
|
$12 |
|
March 26 |
|
2,752 |
|
@ |
|
$15 |
During March 16,512 units were sold. Dunbar uses a periodic inventory system.
(a) Determine the cost of goods available for sale.
(b) Calculate Average Cost.
(c) 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).