Exercise 3

Company Q has the following information regarding its merchandise for 2018.

Date	Event	Details
Jan. 1	Balance	400 units @ RO3
May 1	Purchase	200 units @ RO4
July 15	Sale	300 units
Oct. 10	Purchase	250 units @ RO5
Nov. 14	Sale	400 units
Dec. 9	Purchase	100 units @ RO 8
Dec. 18	Sale	125 units

a. Using the periodic system, determine cost of goods sold and the ending Merchandise Inventory balance under FIFO, LIFO, and weighted average.

b. Determine FIFO, LIFO, and weighted average under the perpetual system.