5.

Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 500 units @ $55 $27,500 Purchases: January 10: 500 units @ $60 January 20: 1,000 units @ $63 Sales: January 12: 800 units January 28: 750 units Required:Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses average cost and a perpetual inventory system (fill in the blanks on the next page).

January 12 COGS: ______________

January 28 COGS: ______________

January 31^stending inventory: ______________

Circle the right answer below:

If Denver Office used a FIFO perpetual system instead of average cost, their ending inventory will be:

HIGHER / LOWER

than the one reported above.