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 $\backslash (\backslash$$ $6\mathrm{.}50\backslash ).$ 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 averagecost$).$ Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. $($Note: For average$-$cost$,$ round cost per unit to three decimal places.$)$

b$.$ Cost of goods sold:

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?