P$7\mathrm{.}3($LO $2),$ AP Vista Company Inc. had a beginning inventory of $100$ units of Product RST at a cost of

$$7$ per unit. During the year, purchases were:

Vista Company uses a periodic inventory system. Sales totaled $1,500$ units.

Instructions

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

b$.$ Determine the ending inventory and 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.

c$.$ Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest

cost of goods sold for the income statement?