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Savage Distribution markets CDs of performing artist Little Sister. At the beginning of October, Savage had in beginning inventory 1,200 Little Sister's CDs with a unit cost of $5. During October, Savage made the following purchases of Little Sister's CDs.
Oct 3 4,000 @ $6 Oct 19 2,500 @ $8
Oct 9 3,000 @ $7 Oct 25 2,000 @ $9
During October 9,400 units were sold. Savage uses a periodic inventory system.
Instructions
(a) Determine the costs of goods available for sale.
(b) Determine the costs assigned to ending inventory and to cost of goods sold using
(a) FIFO,
(b) LIFO, and
(c) Weighted average.
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