A company reports the following beginning Inventory and two purchases for the month of January, On January 26, the company sells 250 units Ending Inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units Unit Cost 230 $2.00 2.20 100 2.34 50 ot-37-15 Required: Assume the perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on the FIFO method. Perpetual FIFO: Goods purchased # of Cost per Date units unit Cost of Goods Sold units of Cost per Cost of Goods Sold Inventory Balance Inventory #of units Cost per unit Balance sold unit January 1 January 9 19 50@'220 @ $ 220 January 25 100 @ $ 2.34 $ 220 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mese Wholesalers with credit terms of 2/10, 1/60 and an Invoice price of $27,400. The merchandise had cost Mesa $18,687. Assume that both buyer and seller use a perpetual Inventory system and the gross method 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. 12920