Inventory Costing Methods

Harrison, Charles & Company Inc. sells flower planters for $7 each. On its first day of business in January, the company purchased 2,000 planters for $3 each. The company sold 300 units during the first month of operations and sold an additional 1,300 units the next month. To prevent inventory stock-outs during summertime, the company bought an additional 700 units for $4.50 each in May. The company sold 850 units from May through December. The company uses a perpetual inventory system and the FIFO inventory costing method.

Required:

a. Compute Harrison, Charles & Company's ending inventory balance at the end of the year and its cost of goods sold balance for the year.

Ending Inventory	$ _______
Cost of goods sold	$ _______