Problem:
Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,283 CDs with a unit cost of $9. During March, Dunbar made the following purchases of CDs. March 5 2,626 @ $11 March 21 6,565 @ $13 March 13 4,596 @ $12 March 26 2,626 @ $14 During March 15,756 units were sold. Dunbar uses a periodic inventory system.
Required:
Question: 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).
Note: Be sure to show how you arrived at your answer.