P$6\mathrm{.}2($LO $2),$ AP Mullins Distribution markets CDs of numerous performing artists. At the beginning of March, Mullins had in beginning inventory $2,500$ CDs with a unit cost of $$7.$ During March, Mullins made the following purchases of CDs$.$ P$6\mathrm{.}2($LO $2),$ AP Mullins Distribution markets CDs of numerous performing artists. At the beginning of March, Mullins had in beginning inventory $2,500$ CDs with a unit cost of $$7.$

During March, Mullins made the following purchases of CDs$.$

During March $12,000$ units were sold. Mullins uses a periodic inventory system.

Instructions

a$.$ Determine the cost of goods available for sale.

b$.$ 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. $($For average$-$cost$,$ round the weighted$-$average unit cost to three decimal places.$)$

b$.$ Cost of goods sold:

FIFO $$105,000$

LIFO $$115,500$

Average $,$$$109,601$

c$.$ 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 income statement?

Determine cost of goods sold and ending inventory using FIFO, LIFO, and average$-$cost in a periodic inventory system and assess financial statement effects.

March $52,000$ @ $$8$ March $215,000$ @ $$10$

March $133,500$ @ $$9$ March $262,000$ @ $$11$

During March $12,000$ units were sold. Mullins uses a periodic inventory system.

Instructions

Determine the cost of goods available for sale.

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. $($For average$-$cost$,$ round the weighted$-$average unit cost to three decimal places.$)$

b$.$ Cost of goods sold:

FIFO $$$$105,000$

LIFO $$$$115,500$

Average $$$$109,601$

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 income statement?

Determine cost of goods sold and ending inventory using FIFO, LIFO, and average$-$cost in a periodic inventory system and assess financial statement effects.