Question

Shown below is activity for one of the products of Denver Office Equipment. The company uses a perpetual inventory system.

 

January 1 balance, 500 units @ $55     $27,500

Purchases:

January 10 : 500 units @ $60

January 20 : 1,000 units @ $63

Sales:

January 12 :800 units

January 28:750 units

1-Compute the ending inventory and cost of goods sold assuming Denver uses FIFO.

2-Compute the ending inventory and cost of goods sold assuming Denver uses average cost.

 



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