Dyna Distribution markets CDs of the performing artist King James. At the beginning of March, Dyna had in beginning inventory 2,835 King James CDs with a unit cost of $2 During March, Dyna made the following purchases of King James CDs.
March 5 6,615 @ $4
March 21 3,780 @ $13
March 13 7,560 @ $5
March 26 3,780 @ $14
During March, 18,900 units were sold. Dyna uses a periodic inventory system.
Determine the cost of goods available for sale.
The cost of goods available for sale $
Average cost per unit $
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 $ $ $
Which cost flow method results in:
(1) the highest inventory amount for the balance sheet?
(2) the highest cost of goods sold for the income statement?
(1) produces the highest inventory amount, $ .
(2) produces the highest cost of goods sold, $ .