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Question - Bonita Distribution markets CDs of the performing artist Unique. At the beginning of October, Bonita had in beginning inventory 2,000 of Unique's CDs with a unit cost of $7. During October, Bonita made the following purchases of Unique's CDs.
Oct. 3..;@ $8
Oct. 1..;@ $10
Oct. 9..;@ $9
Oct. 254,000 @ $11
During October, 10,950 units were sold. Bonita 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).
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