Determine the Cost of Goods Sold and the Merchandise Inventory Balance #1

PSA 9-4 Determine the Cost of Goods Sold and the Merchandise Inventory Balance #1 Metalworks Inc. sells office furniture to corporate customers. The company uses the perpetual inventory system and keeps careful records. The August purchases and sales of merchandise inventory are summarized here (note that the sales price on 8/10 and 8/26 was $195 per unit). Purchases Date 8/1 Quantity Unit Cost Total Quantity Sales Unit Cost Merchandise Inventory Balance Total Quantity Unit Cost 45 Total $ 82 $ 3,690 8/4 60 $ 83 $ 4,980 8/10 80 8/20 8/26 110 $ 85 $ 9,350 55 Calculate the total cost of goods sold for the month (hint: 8/10 cost of goods sold + 8/26 cost of goods sold) and the Merchandise Inventory balance at the end of the month using three methods: 1. FIFO 2. LIFO 3. Average cost