Accounting 116A Chapter 6 Inventory including 2nd year" a. Part 1: Stereo Environment Company has given you the information relating to the inventory quantities, purchases and sales of a totally state of the art stereo system complete with everything the average home owner needs. The history of this system purchased for resale by the Stereo Environment Company during the month is shown below: Cost per Number Of Units Total Cost Unit Inventory, July 1 First purchase - July 12th Second purchase - July 19th Goods available for sale 2 3 4 9 $3.000 3.200 3.250 $6,000 9.600 13.000 $28,600 VON Units sold on July 25th 4 INSTRUCTIONS: Show all final answers in the Answer Grid below a. Compute the cost of the July 31, 2008 inventory and the cost of goods sold for the units in July using: 1. Weighted Average 2. LIFO 3. FIFO b. On August 2nd of 2008, the Stereo Environment Company purchased 3 units at $3,800 per unit, and then on August 10th, they sold 5 units. What is the cost of goods sold for the 5 units sold on August 10th under each of the three methods? In class, we are calling this the "2nd year." You must know what makes up the inventory for Year 1 to solve for Year 2. Weighted Average LIFO FIFO July a. Ending Inventory July a. Cost of Goods Weighted Average LIFO FIFO July a. Ending Inventory July a. Cost of Goods Sold August b. Cost of Goods Sold