Questions: (a) On December 1, Marvin's Corp. had three DVD players left in stock at an individual unit price of 85. During December, the following events took place: December 1: 10 DVD players were purchased at 100 each. December 15: 5 DVD players were sold at 150 each. December 31: 2 DVD players were returned by customers for 40 each. (b) Calculate the cost of goods available for sale during December using FIFO periodic inventory method, assuming that there were 20 DVD players left in stock on December 31. (c) Calculate the cost of goods sold during December using FIFO periodic inventory method.

To calculate the cost of goods available for sale during December using the FIFO (First-In, First-Out) periodic inventory method, we need to consider the inventory at the beginning of the month, the purchases made during the month, and any returns or sales that affect the inventory.

Initial Inventory on December 1:

• 3 DVD players at $85 each

Purchases during December:

• December 1: 10 DVD players at $100 each

Total Inventory Available for Sale:

• Initial Inventory: 3 DVD players at $85 each = $255
• Purchases: 10 DVD players at $100 each = $1,000

Total Cost of Goods Available for Sale:

• $255 (initial inventory) + $1,000 (purchases) = $1,255

Events Affecting Inventory:

• December 15: 5 DVD players sold (does not affect the cost of goods available for sale calculation)
• December 31: 2 DVD players returned (these returns are typically considered at the sale price, not affecting the cost of goods available for sale calculation directly)

Since the question asks for the cost of goods available for sale and not the cost of goods sold, we focus on the inventory available before any sales or returns.

Therefore, the cost of goods available for sale during December using the FIFO periodic inventory method is $1,255.