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Inventory Valuation under FIFO Method: Company XYZ has the following inventory transactions during May: May 1: Beginning Inventory - 100 units at $10 per unit
Inventory Valuation under FIFO Method:
Company XYZ has the following inventory transactions during May:
- May 1: Beginning Inventory - 100 units at $10 per unit
- May 10: Purchase - 200 units at $12 per unit
- May 20: Purchase - 150 units at $15 per unit
- May 25: Sale - 250 units
Requirements:
- Calculate the cost of goods sold (COGS) for May using the FIFO method.
- Determine the value of ending inventory as of May 31.
- Prepare the journal entry to record the sale on May 25.
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