Problem 6-3A

Riverbed Corp had a beginning inventory of 106 units of Product RST at a cost of $8 per unit. During the year, purchases were:

Feb. 20		656		units at		$9		Aug. 12		385		units at		$11
May 5		500		units at		$10		Dec. 8		107		units at		$12

(a) Determine the cost of goods available for sale.Riverbed Corp uses a periodic inventory system. Sales totaled 1,610 units.

(b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.)

Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?