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At the beginning of the current year, MegaSounds opened a music store that sells compact disks. At the end of the year, a physical inventory count revealed that 2,500 of those disks are on hand.
Date No. of disks purchased Cost/Unit Total Cost
Jan 1 1,400 $8.00 $
Feb 4 3,500 $8.50 $
July 5 4,800 $8.25 $
Aug 6 6,800 $8.30 $
Oct 11 11,300 $8.40 $
Total 27,800 $
Required:
1) Calculate the total cost for each purchase date.
2) Calculate the ending inventory using (a) FIFO, (b) LIFO, and Average Cost methods.
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