1. Elston Company had a beginning inventory of 200 units at a cost of rm12 per unit on August 1. During the month, the following purchases and sales were made.

Purchases ______________Sales ________

August 4 250 units at RM13/unit August 7 150 units @ RM20

August 15 350 units at RM15/unit August 11 100 units @ RM20

August 28 200 units at RM14/unit August 17 250 units @ RM25

August 24 260 units @ RM25

Elston uses a perpetual inventory system.

Required:

i.Determine ending inventory and cost of goods sold under:

1. average cost, and
2. FIFO.

2. Compute gross profit for the month of August using:

a) average cost, and

b) FIFO.