Movies Abound Pty Ltd sells DVDs of the performing artist Edwin Drood. At the beginning of October, Movies Abound had in beginning inventory 1000 Drood DVDs with a unit cost of $10. During October, Movies Abound made the following purchases of Drood DVDs.

During October 11 000 units were sold. Movies Abound uses a periodic inventory system. 

Required

(a) Determine the cost of goods available for sale.

(b) Determine (1) the ending inventory and (2) the cost of sales under each of the assumed cost flow methods (FIFO, LIFO and average cost). Prove the accuracy of the cost of sales under the FIFO and LIFO methods.

(c) Which cost flow method results in (1) the highest inventory amount for the statement of financial position and (2) the highest cost of sales for the statement of profit or loss?

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Oct. 3 Oct. 9 3500 @ $12 4000 @ $14 Oct. 19 Oct. 25 3000 @ $16 2000 @ $18