A company uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:

Beginning Inventory (Jan 1): 16 widgets at $10 each

Purchase Jan 11: 14 widgets at $12 each

Sale Jan 14: 25 widgets at $20 each

Question 1 : Assuming the company uses FIFO flow assumption, what is the cost of goods sold to be recorded on Jan 14?

(16 @ 10=160) (9 @ 12=108) 160+108=268

Question 2: If the units sell for $20 each what is the gross profit of the Jan 14 sale?

500-268=232

Question 3: Assuming the company uses the FIFO flow assumption, what is the ending inventory to be recorded on Jan 31?

Beginning inventory+ purchases-CGOS

160+168-268=60