1) The following data are extracted from the income statement: Beginning Inventory: $5,000 Gross sales: $16,000 Freight-in: $1,000 Sales returns: $1,000 Ending inventory: $6,100 Purchases: $9,100 The cost of sales is Select one:

a. $6,100 b. $9,000 c. $10,000 d. $7,000

2)

Lee Ltd has the following units and costs:

	Units	Unit Cost
Inventory, 1 January	400	$11
Purchase, 15 June	650	$12
Purchase, 20 November	250	$13

If 450 units are on hand at 31 December, what is the cost of ending inventory and cost of goods sold under FIFO? Lee Ltd uses a periodic inventory system.

Select one:

a.

$5,850 and $9,600

b.

$5,400 and $10,050

c.

$5,650 and $9,800

d.

$5,000 and $10,450