2)

Assume that Larkspur Company has the following transactions in its first month of operations. Date Sold Feb. 1 Purchases 1,800 a $3.30 5,500 @ $3.65 Feb. 10 Balance 1.800 units 7.300 units 3.100 units 5,100 units Feb. 21 4,200 units Feb. 28 2,000 @ $4.00 Larkspur uses a perpetual inventory system. (a) Compute cost of goods sold and ending inventory at February 28, assuming Larkspur uses the FIFO cost flow assumption Cost of goods sold $ Ending inventory LA Nash Company is a multiproduct firm that uses the perpetual inventory system. Presented below is information concerning one of its products, the Hawkeye Date Price/Cost Transaction Beginning inventory Quantity 920 Jan. 1 $10 Feb.4 Purchase 1,840 16 Feb. 20 Sale 2,300 32 Apr. 2 Purchase 2,760 21 May 4 Sale 2,024 35 (a) Compute cost of goods sold under FIFO. Cost of goods sold $ Ending inventory $