Solve the below problem:
Q: Mach IV Audio uses a periodic inventory system. One of the store's most popular products is an MP3 car stereo system. The inventory quantities, purchases, and sales of this product for the most recent year are as follows:
Number
of Units |
Cost
per Unit |
Total Cost |
| Inventory, Jan. 1 |
10 |
$ |
299 |
$ |
2,990 |
| First purchase (May 12) |
15 |
|
306 |
|
4,590 |
| Second purchase (July 9) |
20 |
|
308 |
|
6,160 |
| Third purchase (Oct. 4) |
8 |
|
315 |
|
2,520 |
| Fourth purchase (Dec. 18) |
19 |
|
320 |
|
6,080 |
|
|
|
|
|
|
| Goods available for sale |
72 |
|
|
$ |
22,340 |
| Units sold during the year |
51 |
|
|
|
|
|
|
|
|
|
|
| Inventory, Dec. 31 |
21 |
|
Using periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods sold for the MP3 systems during the year under each of the following cost flow assumptions