Suppose that on December $1.$

Amazon.com has three wireless speakers left in stock. All are identical and all are priced to sell at $$100.$

One of the three wireless speakers left in stock, with serial #$1012,$ was purchased on June $1$ at a cost of $$58.$ Another, with serial

#$1045,$ was purchased on November $1$ for $$54.$ The last wireless speaker, serial #$1056,$ was purchased on November $30$ for $$48.$

$($a$)$

Your answer is correct.

Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three wireless speakers were

sold by the end of December. Amazon's year$-$end.

FIFO Cost of Goods Sold $

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$($b$)$

If Amazon used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively

choosing" which particular wireless speakers to sell to the two customers? What would be Amazon's cost of goods sold if the

company wished to minimize earnings? Maximize earnings?

Cost of goods sold would be $

Cost of goods sold would be $

if it wished to

if it wished to

the earnings.

the earnings.