1. Cost of inventory on hand on 1 January 2021 was $50,000 and on 31 December 2021 was $70,000. Inventory purchases for the year amounted to $320,000, freight outwards expense was $1,000 and purchase returns were $2,800. Calculate the cost of sales for the year.
2. A company uses a periodic inventory system and rounds the average unit cost to the nearest dollar. Calculate the cost of ending inventory using the FIFO method

	units	cost per unit
Beginning inventory	10	$ 50
January purchase	10	$ 48
July purchase	39	$ 52
October purchase	20	$ 48
Ending inventory	25