1. ABC Company uses a periodic inventory system and experienced the following transactions related to its merchandise inventory in April.

Quantity Unit Cost

April 1 Inventory on hand 1,200 $4.00

April 3 Purchase 300 $5.00

April 8 Sale 1,000

April 11 Purchase 500 $6.00

April 19 Sale 500

April 25 Purchase 450 $7.00

April 30 Sale 600

Determine the inventory balance ABC would report on its April 30 Balance sheet and the cost of goods sold it would report on its April income statement using the FIFO and LIFO cost flow assumptions. Show your work.

(b) (Perpetual Inventory System and Average Cost) Assume the same facts as in problem (a), except that ABC company uses a perpetual inventory system. Determine the inventory balance ABC would report on its April 30 Balance sheet and the cost of goods sold it would report on its April income statement using the average cost flow assumption. Show your work