FER$-8$

The following information is available for Juddo Inc., a merchandising business in St$.$ Catharines,

Ontario. The business uses the perpetual inventory system and controls its inventory using the

FIFO method.

Calculate the cost of goods sold and the ending inventory, using a perpetual inventory system.

In addition, provide the entries for all the transactions $($the chart is provided on the next page.$)$

NOTE: more rows have been provided than you require. Assume all sales and purchases were

made for cash. On May $31$ you review the selling price of the product and discover that, due to a competitor's new and less expensive product, you can now only sell your product for $$4$ each. What, if anything, should the business do and why? If an entry is required provide the entry and update the inventory control chart and the accounting records, above. Show your calculations!