The cost of goods avail for sale, FIFO, LIFO, & averg cost. Periodic inven sys
Tween Distribution markets CDs of the performing artist Little Sister. At the beginning of October, Tween had in beginning inventory 1,000 Sister's CDs with a unit cost of $5. During October Tween made the following purchases of Sister's CDs.
Oct. 3 4,000 @ $6 Oct. 19 2,000 @ $8
Oct. 9 3,000 @ $7 Oct. 25 2,500 @ $9
During October 9,500 units were sold. Tween uses a periodic inventory system.
Instructions
a. Determine the cost of goods available for sale.
b. Determine
(1) the ending inventory under each of the assumed cost flow methods (FIFO, LIFO, and average cost).
(2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average cost).
