Merchandising Operations and Inventories Your final task is to assist Elegant Furnishings, a newly formed merchandising company that purchases and resells high-end furnishings. The company uses a perpetual system and computes cost of goods sold based on the Average Cost method.

The following information about the companys purchases and sales during March 2022, is provided:

Purchases Sales Sales

Units Unit Cost Units Selling Price/Unit

Mar 1 Beginning Inventory 60 $15.00

Mar 5 Purchase (ABC Home Store) 140 $15.50

Mar 14 Sales (A. Andrews) 190 $19.00

Mar 27 Purchase (Fine Styles) 70 $16.00

Mar 29 Sales (J. Jones); FOB destination 30 $19.50

NOTE: All purchases are made on account, terms 2/10, n/30. All sales are made on account, terms 3/15, n/30.

Required: a. Compute the cost of goods sold and the value of the ending inventory for March.