Reference no: EM132652205
Question - The Audiophile sells high-performance stereo equipment. Massachusetts Acoustic recently introduced the CARNEGIE-440, A STATE-OF-THE-ART SPEAKER SYSTEM. During the current year, The Audiophile purchased nine of these speaker systems at the following dates and acquisition costs:
Date Units purchased Unit cost Total cost
Oct. 1 2 units purchased$3,000 total cost$6,000
Nov. 17 3 unit purchases$3,200 total cost$9,600
Dec. 1 4 unit purchased$3,250 total cost$13,000
Available for sale during the year 9 $28,600
On Nov, 21. The Audiophile sold four of these speaker systems to the Boston Symphony. The other five Carnegie-440s remained in inventory at December 31.
Instructions - Compute the cost of goods sold relating to the sale of Carnegie-440s speakers to the Boston Symphony using following flow assumptions:
1. First-in, first-out (FIFO)
2. Last-in, first-out (LIFO)