Adamo Limited (AL) is a wholesaler of machine parts. Jacob Avery, an employee of AL, recently purchased AL from the original owner, Mr. Adam, who is retiring. Mr. Avery has come to you for advice on how to calculate ending inventory and cost of goods sold. He has asked you to explain your reasoning for any choices you make. Mr. Avery provided you with the following example of his inventory costs using Part 17592a.

Required:

Calculate ending inventory as at November 30 and cost of goods sold for Part 17592a for November. Provide the explanations requested by Mr. Avery. Mr. Avery will use a periodic inventorysystem.

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Inventory Information for Part 17592a Number of Date of purchase/sale Various Nov. 10 Nov. 12 Nov. 20 Nov. 22 Nov. 25 Cost per Selling price per unit units 250 units 200 units 160 units 150 units 320 units 180 units unit $13.00 13.50 Opening inventory Purchase Sale Purchase Sale Purchase 30.00 13.75 60.00 14.00