Inventery Transactions Martie Company had a beginning inventory of 100 units with a cost of $17 each. During May, the company engaged in the following transactions:

Martie Company uses a perpetual inventory system, computing its cost of goods sold for each sale and its new inventory balance after each inventory transaction. The company assigns inventory costs on a FIFO basis.

a. Prepare a schedule showing the computation of Martie’s cost of goods sold for May.

b. Prepare a schedule showing the composition of Martie’s inventory at the end of May.

c. If Martie assigned inventory costs on a LIFO basis rather than FIFO, compute the company’s cost of goods sold and ending inventory for May.

d. If Martie assigned inventory costs on a moving-average basis, recomputing the average cost of its inventory after each purchase, compute the company’s cost of goods sold and ending inventory for May.

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May Purchased 1,000 units of inventory at a list price 5 of $19 each; because of a special promotion, Martie is given a special 10 percent quantity discount and payment terms of net 30. Paid freight charges of $2,000 on the May 1 purchase. 7 Sold 500 units for $25 each, with terms of net 10 1956 eom (end of month). Paid for the May 1 purchase. Purchased 200 units of inventory for $20 each, freight included; terms: net 30. Sold 100 units for cash of $25 each. Purchased 800 units of inventory for $22 each, freight included; terms: net 30. 25 Sold 1,200 units for $30 each on account; terms: net 30. 30 Purchased 200 units of inventory for $23 each, with terms of net 30; freight charges of $400 will be due in 5 days.