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Question(s) / Instruction(s):

Turner Distribution markets CDs of numerous performing artists. At the beginning of March, Turner had in beginning inventory 3,600 CDs with a unit cost of $10. During March Turner made the following purchases of CDs.

 

March 5                2,880 @ $12                        March 21             5,760 @ $14

March 13             7,920 @ $13                        March 26             2,880 @ $16

During March 18,720 units were sold. Turner uses a periodic inventory system

Requirement:

(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 average cost).

(c)           Which cost flow method results in the highest inventory amount for the balance sheet?

 (d)         Which cost flow method results in the highest cost of goods sold for the income statement?

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