Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 2,500 CDs with a unit cost of $7. During March Dunbar made th following purchases of CDs.March 5 – 2,000 @ $8March 13 – 3,500 @ $9March 21 – 5,000 @ $10March 26 – 2,000 @ $11During March 12,000 units were sold. Dunbar used a periodic inventory system.a. Determine the cost of goods available for saleb. 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 te accuracy of the cost of goods sold under the FIFO and LIFO mehtods. (Note: for average cost, round cost per unit to three decimal places.)c. Which cost flow method results in 1. the highest inventory amount for the balanc sheet abd 2. the highest cost of goods sold for the income statement?
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