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Question - Martinez Distribution markets CDs of numerous performing artists.
At the beginning of March, Martinez had in beginning inventory 3,100 CDs with a unit cost of $7. During March, Martinez made the following purchases of CDs.
March 53,875 @ $8March 216,650 @ $10March 135,425 @ $9March 264,200 @ $11
During March 17,000 units were sold. Martinez uses a periodic inventory system.
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.
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