Question

A.

Topeka Merchandising Company uses a perpetual inventory system. During the month of August, it had the following purchase and sales transactions.

Date	Activities	Units Acquired At Cost	Units Sold at Retail
8/1	Beginning inventory	100 units @$10/unit
8/5	Purchase	40 units @$12/unit
8/10	Sales		60 units @$30/unit
8/15	Purchase	70 units@$13/unit
8/25	Sales		50 units @$35/unit
	Totals	210 units	110 units

Calculate the Costs of Goods Sold for the month of August, if Topeka Merchandising Company uses FIFO cost methodology. Report in Dollars.

B.

Topeka Merchandising Company uses a perpetual inventory system. During the month of August, it had the following purchase and sales transactions.

Date	Activities	Units Acquired At Cost	Units Sold at Retail
8/1	Beginning inventory	100 units @$10/unit
8/5	Purchase	40 units @$12/unit
8/10	Sales		60 units @$30/unit
8/15	Purchase	70 units@$13/unit
8/25	Sales		50 units @$35/unit
	Totals	210 units	110 units

Calculate the Ending Inventory Balance, as of August 31, if Topeka Merchandising Company uses FIFO cost methodology. Report in Dollars.

Answer 1

Answer.

A. Cost of goods sold=$1120

B. Cost of ending inventory=$1270