A) Kat Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 78 units were sold.

B)

On October 5, Kat Corporation buys merchandise for resale on account from Concord Corporation. The selling price of the goods is $4,870, and the cost to Concord Company is $3,120. On October 8, Kat returns defective goods with a selling price of $690 and a cost of $250. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $250, if not more. Both companies use a perpetual inventory system.

RECORD THE TRANSACTIONS ON THE BOOMS OF KAT CORPORATION

Date Explanation Units Unit Cost Total Cost May 1 Inventory 33 $10 $330 May 15 Purchase 24 11 264 May 24 Purchase 37 12 444 Total 94 $1,038 Calculate the cost of goods sold and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ 16 Ending inventory $ $ 176.64 iccount Titles and Explanation Debit Credit Purchases 4870 Accounts Payable 4870 Accounts Payable 690 Purchase Returns and Allowances 690