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Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 2,500 CDs with a unit cost of $7. During March, Dunbar made the following purchases of CDs. March 5 2,000 @ $8 21-Mar 5,000 @ $10 13-Mar 3,500 @ $9 26-Mar 2,000 @ $11 During March 12,000 units were sold. Dunbar uses a periodic inventory system.
1. Determine the cost of goods available for sale.
2. 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. (Note:For average-cost, round cost per unit to three decimal places.)
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