Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 65

Clear Sound Audio uses a periodic inventory system.ne of the store's most popular products is an MP8 car stereo system.he inventory quantities, purchases, and sales of this product for the most recent year are as follows:

Instructions
a.sing periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods sold for the MP8 systems during the year under each of the following cost flow assumptions:
1.irst-in, first-out.
2.ast-in, first-out.
3.verage cost (round to nearest dollar, except unit cost).
b.hich of the three inventory pricing methods provides the most realistic balance sheet valuation of inventory in light of the current replacement cost of the MP8 units Does this same method also produce the most realistic measure of income in light of the costs being incurred by Clear Sound Audio to replace the MP8 systems when they are sold Explain.