Breathless Distribution markets CDs of the performing artist Christina Spears. At the beginning of October, Breathless had

Question:

Breathless Distribution markets CDs of the performing artist Christina Spears. At the beginning of October, Breathless had in beginning inventory 1,000 Spears CDs with a unit cost of $5. During October Breathless made the following purchases of Spears CDs.

During October 10,000 units were sold. Breathless uses a periodic inventory system

Instructions
1) Determine the cost of goods available for sale.
2) 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). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.
(b)(2) Cost of goods sold:
FIFO .......$66,000
LIFO .......$74,000
Average ......$70,400
3) 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 incomestatement?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...