Question

Blue Spruce Distribution markets CDs of numerous performing artists. At the beginning of March, Blue Spruce had in beginning inventory 4,200 CDs with a unit cost of $7. During March, Blue Spruce made the following purchases of CDs.

March 5		5,250	@	$8		March 21		8,300	@	$10
March 13		7,350	@	$9		March 26		6,400	@	$11

During March 23,000 units were sold. Blue Spruce uses a periodic inventory system.

B2. 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). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 3 decimal places for computations.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory		$enter the ending inventory amount as per FIFO in dollars		$enter the ending inventory amount as per LIFO in dollars		$enter the ending inventory amount as per Average-cost in dollars
The cost of goods sold		$enter the cost of goods sold amount as per FIFO in dollars		$enter the cost of goods sold amount as per LIFO in dollars		$enter the cost of goods sold amount as per Average-cost in dollars

Answer 1