FIFO, LIFO and Average costs... please helppp?

Question

Sonnys Distribution markets CDs of the performing artist Han Clooney. At the beginning of March, Sonny had in beginning inventory 1,514 Clooney CDs with a unit cost of $8. During March Sonny made the following purchases of Clooney CDs.

March 5 2,986 @ $9

March 13 5,513 @ $10

March 21 4,009 @ $11

March 26 1,988 @ $12

During March 12,518 units were sold. Sonny 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). (Round average-cost per unit to 3 decimal places, i.e. $9.587 for computations. Round final answers to 0 decimal places, i.e. $33,555.)

Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

Answer 1

beginning inventory 1,514 @ $8

March 5 2,986 @ $9

March 13 5,513 @ $10

March 21 4,009 @ $11

March 26 1,988 @ $12

Total available for sale: 16,010 units; total cost $162,071

Average cost = $162,071/16,010 = $10.123

During March 12,518 units were sold. Sonny uses a periodic inventory system.

Determine (1) the ending inventory

= 16,010 - 12,518 = 3,492 units

(2a) the cost of goods sold under FIFO

Cost of ending inv. 3,492 units = 1,988 @ $12 plus 1,504 @11 = $40,400

COGS = $162,071 - $40,400 = 121,671

(2b) the cost of goods sold under LIFO

Cost of ending inv. 3,492 units = 1,514 @ $8 plus 1,978 @ $9 = $29,914

COGS = $162,071 - $29,914 = $132,157

(2c) the cost of goods sold under average cost

12,518 units x $10.123 = $126,720

Which cost flow method results in (1) the highest inventory amount for the balance sheet - FIFO (cos the costs have been rising)

and (2) the highest cost of goods sold for the income statement? - LIFO