1.- Thompson Company updates its inventory records perpetually. The companys records showed a beginning inventory of $25,000; cost of goods sold of $33,000; and ending inventory of $27,000. How much inventory was purchased during the year?

a) $35,000.

b) $31,000.

c) $29,000.

d) $18,500.

2.- AAA Co. uses a periodic inventory system and has the following information in regard to its inventory:

Beginning inventory	500 units @ 17	$8,500
Purchase on January 25	600 units @ 18	10,800
Purchase on March 15	500 units @ 19	9,500
Purchase on October 2	700 units @ 20	14,000
Goods available for sale		$42,800

There are 900 units in ending inventory. What is the amount of the ending inventory using the FIFO method?

a) $8,500

b) $14,000

c) $19,300

d) $17,800